east asia and pacific region: marine plastics series
TRANSCRIPT
AppendicesMARKET STUDY FOR VIETNAM: PLASTICS CIRCULARITY OPPORTUNITIES AND BARRIERS
East Asia and Pacific Region: MARINE PLASTICS SERIES
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
© 2021 The World Bank Group1818 H Street NW, Washington, DC 20433Telephone: 202-473-1000; Internet: www.worldbank.org
This work is a product of the staff of The World Bank Group. “The World Bank Group” refers to the legally separate organizations of the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).
While believed reliable, the World Bank Group does not guarantee the accuracy, reliability or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank Group concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The findings, interpretations, and conclusionsexpressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank Group or the governments they represent.
Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of any of The World Bank Group organizations, all of which are specifically reserved.
CitationWorld Bank Group 2021. Market Study for Vietnam: Plastics Circularity Opportunities and Barriers. Marine Plastics Series, East Asia and Pacific Region. Washington DC.
Rights and PermissionsThe material in this work is subject to copyright. Because the World Bank Group encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. All queries on rights and licenses should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; e-mail: [email protected].
Cover photo: Andreas Rose. Further permission required for reuse.
MARKET STUDYFOR VIETNAM: PLASTICS CIRCULARITY OPPORTUNITIES AND BARRIERS
APPENDICES
4 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
TABLE OF CONTENTSAPPENDIX 1: VIRGIN RESIN PRODUCERS ACTUAL/PLANNED CAPACITIES............................................................ 6
APPENDIX 2: DEFINITIONS OF CIRCULARITY AND OTHER RELATED CONCEPTS ................................................. 8
APPENDIX 3: STAKEHOLDER ENGAGEMENT LIST ...................................................................................................... 10
APPENDIX 4: METHODOLOGY DIFFERENCES BETWEEN MATERIAL FLOW ANALYSIS CONDUCTED UNDER THIS WBG STUDY AND IUCN/UNEP STUDY ......................................................................................... 18
APPENDIX 5: RESIN USAGE BREAKDOWN BY INDUSTRY SECTOR .........................................................................20
APPENDIX 6: NET RESIN IMPORT/EXPORT AND NET SEMI-FINISHED PRODUCT IMPORT/EXPORT ...............22
APPENDIX 7: DATA SOURCES AND KEY ASSUMPTIONS FOR MATERIAL VALUE LOSS CALCULATIONS ........32
APPENDIX 8: INFORMATION ON PLASTICS RECYCLERS IN VIETNAM ...................................................................46
APPENDIX 9: ASSUMPTIONS RELATED TO NET SCRAP PLASTIC IMPORTS .........................................................56
APPENDIX 10: COMPARISON OF VIRGIN AND RECYCLED RESINS AND OIL PRICES ..............................................58
APPENDIX 11: MANDATING RECYCLED CONTENT TARGETS & VIETNAM’S ABILITY TO FULFIL THESE TARGETS .....................................................................................................................................................62
APPENDIX 12: VPBANK GREEN LOAN .............................................................................................................................64
APPENDIX 13: THE ENABLING POLICY ENVIRONMENT FOR CIRCULARITY AND INTERVENTIONS ..................68
APPENDIX 14: TIGHTENING OF GLOBAL REGULATIONS ON SCRAP PLASTIC & RECYCLED PLASTIC TRADING .. 90
APPENDIX 15: BIOPLASTIC ALTERNATIVES ...................................................................................................................92
APPENDIX 16: ASSUMPTIONS FOR THE IMPACT OF EACH INTERVENTION ............................................................94
APPENDIX 17: SUMMARY OF ALL RECOMMENDED INTERVENTIONS AND ACTIONS ...........................................98
APPENDICES
6 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 1:
VIRGIN RESIN PRODUCERS ACTUAL/PLANNED CAPACITIES
Summary of Existing Virgin Resin Production and Planned Capacity for Vietnam
Resin Producer Resin Virgin Resin
Production Capacity in 2019 (TPY)
Actual Virgin Resin
Production in 2019 (TPY)
Planned Additional Capacity
2020 Onwards
(TPY)
No Planned Additional Capacity
Hung Nghiep Formosa PET 145,000 100,000 -
Polytex Far Eastern (Vietnam) Co Ltd
PET 400,000 400,000 -
Haosheng Vina PET 50,000 50,000 -
Binh Son Refining & Petrochemical JSC
PP 150,000 165,000 -
Nghi Son Refinery and Petrochemical
PP 400,000 400,000 -
LG Vina Chemicals DOP 40,000 40,000 -
TPC Vina Plastic & Chemical Corporation Limited
PVC 190,000 190,000 -
AGC Chemicals Vietnam Co Ltd
PVC 150,000 150,000 -
Polystyrene Vietnam Co Ltd
PS 54,000 54,000 -
Planned Additional Capacity
Long Son
PE - - 800,000
PP - - 450,000
Others (PVC,
softeners, etc)
- - 350,000
Hyosung PP - - 600,000
Billion Tay Ninh PET - - 400,000
APPENDIX 2: DEFINITIONS OF CIRCULARITY AND OTHER RELATED CONCEPTS | 7
Notes:
• The resin producer capacity figures are based on survey
responses or interviews with private sector stakeholders and
where not possible by survey/interview, through publicly
available information.
• Data points for PET, PP and PE that have been validated
through the Vietnam Plastics Association (VPA) include Hung
Nghiep Formosa, Polytex Far Eastern (Vietnam) Co Ltd, Binh
Son Refining and Petrochemical JSC and Nghi Son Refinery
and Petrochemical. The key data point that has not been
obtained directly through stakeholder interviews or validated
by VPA is the PET production for Hoasheng Vina. The data
is through publicly available information and it has been
assumed as 50%-50% split between PET Packaging and PET
Polyester production.
• Polytex Far Eastern (Vietnam) and Hung Nghiep Formosa can
produce PET polyester resin, but as of 2019, their production
was focused only on PET packaging resin.
• For Binh Son Refining & Petrochemical JSC, the actual virgin
resin production rate of 165,000 TPY is higher than the virgin
resin production capacity in the above table. This is because the
virgin production capacity was obtained from the 2019-2020
Vietnam Plastics Directory overview while the actual virgin
resin production rate is based on company’s responses to
questionnaires for this study. This increase in actual production
rates was due to increased demand in 2019.
• There are no PE resin producers in Vietnam as of 2019.
Photo: Evgeniy Kalinovskiy - shutterstock
8 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 2:
DEFINITIONS OF CIRCULARITY AND OTHER RELATED CONCEPTS
1 Ellen MacArthur Foundation, “Completing the Picture”2 United Nations Environment Programme, “Global Resources Outlook”
2.1 DEFINITION OF CIRCULARITY
To better understand and utilize this definition for this study on plastics circularity, it is important to further understand the definition. This can be done via three approaches:
1. Plastics circularity for a strong, innovative, and resilient plastics recycling industry
This approach to plastics circularity is the focus of this study and it builds on the foundation of Vietnam’s existing plastics manufacturing and recycling industries. This approach to plastics circularity includes the following activities:
• Reduction of plastics usage / single-use plastics usage
• Increasing local plastics recycling capacity
• Increasing production and use of recycled plastics content
• Moving towards 100% reusable, recyclable, biodegradable or compostable plastics materials
2. Plastics circularity to address climate change
The world is increasingly becoming aware of the climate crisis. However, the efforts to tackle this crisis have mainly focused on energy efficiency and a transition to renewable energy which only addresses 55% of global greenhouse gas emissions. The remaining 45% comes from making the products we use every day, according to a 2019 report by The Ellen MacArthur Foundation.1 If countries are serious about achieving the climate goals, they need to tackle this remaining 45%.
3. Plastics circularity to address resource inefficiency
According to a United Nation (UN) Environment report in 2019, each year, 90 billion tonnes of primary materials are extracted and used globally, with only 9% recycled.2 This is commercially and environmentally unsustainable. In the last two decades, not only have resource inefficiencies and pollution challenges become more severe, countries around the world are seeing the limits of a linear economy which is built in the model of ‘take-make-dispose’. The current linear economy system is no longer working for businesses, people, or the environment. Addressing the question of resource efficiency through plastics circularity however is out of scope and this approach will not be covered in this study.
APPENDIX 2: DEFINITIONS OF CIRCULARITY AND OTHER RELATED CONCEPTS | 9
2.2 OTHER DEFINITIONS USED IN THE STUDY
The following definitions and terms in the context of a circular economy are also used in this report:
Waste: Waste is defined as “substances or objects which are disposed of or intend to be disposed of by provisions of National Law” under the Basel Convention.
Municipal Waste / Post-Consumer Waste: Municipal waste is waste that has been disposed of by households or commercial entities after consumption. It is collected through the public waste collection infrastructure of the city. Therefore, post-consumer waste is typically dirty as organic waste that is also produced by residential and commercial sources is mixed into the municipal waste collection system.
Industrial Waste / Post-Industrial Waste: Industrial waste is waste that is generated from industrial activities. These include materials such as chemical containers, pallet film wraps and factory offcuts. These wastes are typically disposed of through privately contracted waste collection services. Hence, they are usually less contaminated than post-consumer waste as it is not typically mixed with other types of waste unless it has already been contaminated due to the industrial activity it is produced from. In fact, in some cases, factories might engage recyclable collectors to collect their recyclables as it is usually cheaper than simply disposing of the materials.
Recycling: Recycling processes may be categorized as two types; Mechanical Recycling and Chemical Recycling.
• Mechanical Recycling is defined as “the processing of plastic waste into secondary raw material or products without significantly changing the chemical structure of the material” by the Basel Convention. For example, the flaking and conversion of post-consumer PET bottles into recycled PET (rPET) pellets are an example of mechanical recycling.
• Chemical Recycling: the Basel Convention defines Chemical Recycling as “the depolymerization of long polymer chains into monomers through a chemical reaction by means of heat and/or chemical agents to produce monomers, chemical raw materials and/or fuels”. Technologies that convert plastics back into secondary raw materials or fuels can be considered to fall under 2 broad categories: (a) plastic-to-plastic (via naphtha or monomer recycling); (b) plastic-to-fuel (PTF).3 Pyrolysis of multilayer flexibles into refuse derived fuel is an example of PTF recycling. While harmonized definitions for chemical recycling are still to be developed, in the European Union (EU), which leads in the development of these technologies, plastic-to-fuel technologies are considered by the chemical recycling industry to be energy recovery, not recycling (as they are linear); only plastic-to-plastic technologies (such as those that produce naphtha or monomers directly) are considered to fall under existing EU definition of recycling in the EU Waste Framework Directive.
Mechanical recycling is preferred to chemical recycling as it requires less energy and has a lower technological requirement. Meanwhile, chemical recycling is advantageous for types of material that are not yet recyclable through mechanical recycling methods (e.g. multi-layer flexibles).
Mechanical recycling where the product of the recycling process is like input materials (e.g., bottle-to-bottle recycling), is preferred to downcycling, where the products are different from the original input (e.g., PET to rPET fiber). This is because downcycling degrades the integrity and quality of the material and hence, reduces the value and results in products that eventually must be disposed of by landfilling or other means.
Note: The report mentions the term smaller recyclers and larger recyclers. In the context of this report, larger recyclers are defined as recyclers with a capacity of more than 3,000 tonnes per year.
3 A Circular Solution to Plastic Waste by BCG
10 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 3:
STAKEHOLDER ENGAGEMENT LIST
APPENDIX 3A: LIST OF PRIVATE SECTOR STAKEHOLDERS ENGAGED FOR IN-DEPTH INTERVIEWS
For references, the key private sector stakeholder categories are:
• Resin Producers - Resin producers produce virgin resin (e.g., PET, PP, PE) from fossil-fuel based feedstocks
• Converters - Converters use virgin resin, and in some cases recycled resins from recyclers, to manufacture a variety of plastic products.
• Collectors - Collectors are informal workers who collect post-consumer plastic products to re-sell for recycling.
• Aggregators - Aggregators collect large quantities of post-consumer or post-in-dustrial plastics from their supply chain (consisting of collectors and junk shops) to re-sell to recyclers.
• Processors & Recyclers - Processors and Recyclers convert the waste plastics collected by the collectors and aggregators and convert them into the recycled raw materials
Photo: S.SUPHON - shutterstock
APPENDIX 3: STAKEHOLDER ENGAGEMENT LIST | 11
List of Private Sector Stakeholders Contacted for this Study
Name of Stakeholder Stakeholder category Name of contact person Position
Binh Son Refining Resin Producer Phan Quoc Toan Sales Director
Nghi Son Resin Producer Interviewed by Ms. Hong My (Secretary General, VPA)
Hung Nghiep Formosa
Resin Producer Interviewed by Ms. Hong My (Secretary General, VPA)
Polytex Far Eastern Resin Producer Interviewed by Ms. Hong My (Secretary General, VPA)
SCG Vietnam (Long Son)
Resin Producer Phuong Trinh Marketing Director
BASF Resin Producers / Plastic Convertors
Tanachart Ralsiripong Country Director
An Phat Resin Producer / Plastic Convertors
Long Nguyen Head of R&D
DynaPlast Plastic Convertor Bennett Jap Director
Duy Tan Plastic Convertor Le Anh
Duong Tu Uyen Thao
Vice President
Sale Manager
Euro Film JSC Plastic Convertor Tran Van Thach General Director
OPEC Plastic Trader Nguyen Minh Tu General Director
FrieslandCampina FMCG Company Berend van Wel Managing Director
Nestle Vietnam & La Vie Vietnam
FMCG Company Fausto Tazzi CEO of La Vie & Board member of PRO Vietnam
Suntory PepsiCo Beverages Vietnam
FMCG Company Jahanzeb Khan CEO
Coca-Cola Vietnam FMCG Company Casper Durandt Sustainability Director Coca-Cola (ASPOU) Asia and South Pacific Operating Unit
URC Corporation FMCG Company Laurent Levan Senior Vice President, Regional Director Indochina Cluster
PRO Vietnam Industry Association Fausto Tazzi CEO of La Vie & Board member of PRO Vietnam
12 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
Name of Stakeholder Stakeholder category Name of contact person Position
Vietnam Plastic Association
Industry Association Huynh Thi My Secretary General
Vietnam Plastic Recyclers Association
Industry Association Hoang Duc Vuong Chairman
Vietnam Chamber of Commerce & Industry
Industry Association Pham Hoang Hai Chief of Secretariat, Vietnam Business Council for Sustainable Development.
INSEE Ecocycle Vietnam
Waste Co-processor Bruno Fux Ecocycle & Sustainable Development Director
Duy Tan Recycler Le Anh
Duong Tu Uyen Thao
Vice President
Sales Manager
HL Plastics Recycler Andy Nguyen Director
Vinatic Hai Phong Recycler Nguyen Phu Binh Sale Associate
Hoang Anh Recycler Nguyen Thi Hoang Anh Owner
Cong Ty Co Phan A Dong Adg
Recycler Mr. Binh Vice president
Vinh Thanh Corporation
Recycler Hoang Duc Vuong Director
Q.M.T - JP Plastic Recycler Ms. Lan Sale Director
Lam Tran Recycler Mr. Thang Owner
Phu Hung Recycler Lan Anh Director
Trinh Nghien Recycler Trinh Nghien Director
Vikohasan Recycler Ngo Anh Tuyet Director
Hat Nhua H.A Recycler Quang Tuan Director
Khanh Quynh Long An
Recycler Ms. Lan Sale Director
Mai Tan Dat Recycler Mr. Dat Director
Mai Hieu Sai Gon Recycler Ms. Hong Director
APPENDIX 3: STAKEHOLDER ENGAGEMENT LIST | 13
Name of Stakeholder Stakeholder category Name of contact person Position
Nhat Nam Tra Vinh Recycler Phan Huong Director
Dai Duong L.A Recycler Mrs. Loan Director
TontoTon Recycler/Processor Barak Ekshtein CEO
Viet Trung Recycler Mr. Tung Director
Viet Tin Recycler Lam Tan Nha Director
Shun An Recycler Lui Hong Jeng Director
Viet Nhat Recycler Mr. Huy Director
Son Trang Recycler Mr. Son Director
Thanh Cong Recycler Tran Ngoc Tong Director
HM Plastic Recycler Andy Nguyen Director
Tan Phu Recycler Nguyen Dang Tan Director
Dai Tin Phat Recycler Mr. Khanh Director
AustDoor Ninh Binh
Recycler Pham Thi Huyen Director
Hiep Phat Recycler Tran Thanh Quy Director
Nam Thien Sang Recycler Phan Thanh Trung Director
Ngu Long Recycler Luong Ngoc Dam Director
Lavergne Recycler Chu Ba Trung Director
Khanh Toan Recycler Phan Thi Thanh Tuyen Director
Sheido Recycler Ms. An Director
VP Bank Financial Institution Tran Minh Hoang E&S Specialist – FI Department
Circulate Capital Impact Investor Karina Cady
Eric See
Operations & Investment Director,
Investment Manager
14 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 3B: LIST OF POLICY EXPERTS/PUBLIC SECTOR STAKEHOLDERS ENGAGED FOR IN-DEPTH INTERVIEWS
List of Policy Experts and Public Sector Stakeholders Contacted as Part of the Analysis for This Study
Name of stakeholder Stakeholder category
Name of contact person Position
Sustainable Consumption and Production Office/ Ministry of Industry and Trade
(SCPO/MOIT)
Government Tran Thu HangSecretary
Sustainable Consumption and Production Office
Government Dang Hai DungSustainable Consumption and Production Office
Vietnam Association for Supporting Industries
(VASI)Government Luu Anh Duc
Deputy Director, Department of Science, Technology, and International Cooperation (DSTIC), VASI
Expertise France NGO Fanny Quertamp Senior Advisor Vietnam
GreenHub NGONguyen Thi Thu Trang
Manager
World Wildlife Fund
(WWF)NGO
Nguyen Thi Dieu Thu
Plastic Smart Cities and MPA Lead
Huy Ho Project Officer, Plastic Policy & EPR
Son Hoai Nguyen Project Manager
Circular Economy Advisory
(CL2B)NGO Kim Le Manager
Global Green Growth Initiative (GGGI)
Development Partner
Thinh Ngoc Tran Investment Officer
Hien Minh Tran Investment Officer
APPENDIX 3C: ATTENDEE LIST FOR STAKEHOLDER CONSULTATION WORKSHOPS
Attendee List of Stakeholder Consultation Workshops
Name of stakeholder Stakeholder category
Name of contact person Position
BASF Resin Producer Erick Contreras Managing Director
Dow Vietnam Resin Producer Son Hoai Nguyen Corporate Affairs Director
Dow Vietnam Resin Producer Viera Feckova Senior Operation Officer
Far Eastern Polytex (VN) Resin Producer Huyen Trinh Chemical Engineer
Sabic Resin Producer Ngoc Vu General Director
An Phat Holdings Plastic Manufacturer Thanh Hoa HaMarket Research Manager – R&D Dept
An Phat Holdings Plastic Manufacturer Bich Ngoc Pham R&D specialist – R&D Dept
RKW Group Plastic Manufacturer Antony Taing Managing Director
APPENDIX 3: STAKEHOLDER ENGAGEMENT LIST | 15
Name of stakeholder Stakeholder category
Name of contact person Position
RKW Group Plastic Manufacturer To Anh Le Assistant to Managing Director
RKW Group Plastic Manufacturer Ngohung No position provided
Huhtamaki Plastic Manufacturer Sawitree Buranapaiboon Director of Innovation
Tashing Plastic Manufacturer Uyen Vu Director
Tashing Plastic Manufacturer Vinh Khuu Director
Andat Plastic Plastic Manufacturer Truong Dang Director
Alta Plastic Manufacturer Tran Hue No position provided
Alta Plastic Manufacturer Pham Minh No position provided
Omya Plastic Manufacturer Khoa Huynh No position provided
Omya Plastic Manufacturer Tran Khoa Technical Sales Engineer
Thanh Binh Plastic Manufacturer Nguyen Minh No position provided
Song Song Co., Ltd.Plastic Manufacturer (Machinery Distributor)
Tu Nguyen No position provided
Coca-Cola Vietnam FMCG Company Tran PhamPublic Affairs, Communication & Sustainability Manager
Coca-Cola Vietnam FMCG Company Casper DurandtDirector Sustainable Packaging and Climate Protection South East Asia
Unilever Vietnam FMCG Company Truc Le Sustainable Business Manager
Unilever Vietnam FMCG Company Van Anh Nguyen Senior SCF Manager
URC Corporation FMCG Company Laurent LevanSenior Vice President, Regional Director Indochina Cluster
Nestlé Vietnam FMCG Company Hoai Thuong Le Senior Corporate Affairs Manager
Nestlé Vietnam FMCG Company Hung Khuat Communications Manager
Nestlé Vietnam FMCG Company Thuy Tran No position provided
FrieslandCampina Vietnam FMCG Company Ho My (Linh) No position provided
FrieslandCampina Vietnam FMCG Company Hoai Tran No position provided
PRO Vietnam Industry Association Tuong Nguyen Technical Operation Manager
PRO Vietnam Industry Association Lien Hoang No position provided
PRO Vietnam Industry Association Trung Hà Phan No position provided
Vietnam Plastic Recyclers Association
Industry Association Duc Vuong Hoang Chairman of Recycling Branch
Duy TanRecycler / Plastic Manufacturer
Tracy Duong Business Director
TonToTon Recycler Roxane LauzetSustainability Compliance & Marketing
16 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
Name of stakeholder Stakeholder category
Name of contact person Position
TonToTon Recycler Le Le Project Executive
Vikohasan Fiber Recycler Tuan Pham Minh Director
Trung Dong Recycler Trang Nguyen Director
Vinatic Recycler Quang Minh Nguyen CEO
Vinatic Recycler Ha Doan Nguyen Business Development Director
Vinatic Recycler Phu Binh Nguyen Business Development Executive
INSEE Ecocycle VietnamCement Plant / Waste Co-processor
Bruno FuxDirector Ecocycle and Sustainable Development
INSEE Ecocycle VietnamCement Plant / Waste Co-processor
Nguyen Vi No position provided
Global Green Growth Initiative
Development Partner
Hien Tran Policy officer
Global Green Growth Initiative
Development Partner
Ngoc Thinh Tran Investment Officer
World Wildlife Fund Vietnam
(WWF Vietnam)NGO Huy Ho Project Officer
WWF Vietnam NGO Hoai Pham Manh Plastic Policy and EPR Coordinator
WWF Vietnam NGO Thuy Nguyen No position provided
Expertise France NGO Fanny Quertamp National Senior Advisor
GreenHub NGO Ha Ngan Ha Program Officer
Circular Design Vietnam NGO Mai Nguyen No position provided
Circular Economy Advisory
(CL2B)NGO Kim Le Director
CL2B NGO Nguyen Hoang Cam Ha Project Manager
CL2B NGO Radio Duong No position provided
Keep Vietnam Clean and Green
NGO Tue Phan Advisor
Nkc VietnamEngineering Consultant
Hong Nguyen Thi Team Leader
Ministry of Industry and Trade
(MOIT)Government Tran Thu Hang
Secretary, Sustainable Consumption and Production Office
Bank of Tokyo-Mitsubishi, MUFG
Bank Tracy Duong Analyst
APPENDIX 3: STAKEHOLDER ENGAGEMENT LIST | 17
Name of stakeholder Stakeholder category
Name of contact person Position
VP Bank Bank Huyen Thanh FI Relationship Manager
VP Bank Bank Tran Minh HoangGreen Specialist for VP Bank’s green Projects
International Finance Corporation (IFC)
Host Kieu Anh Nguyen Administrative Assistant
International Finance Corporation (IFC)
Host Navneet Chadha Regional Circular Economy Lead
International Finance Corporation (IFC)
Host Mira Nahouli Upstream Officer
International Finance Corporation (IFC)
Host Jihu Park Upstream Analyst
International Finance Corporation (IFC)
Host Tuong Anh Vu Energy Specialist
International Finance Corporation (IFC)
Host Tuyen NguyenAsia Regional Lead, Manufacturing Advisory
International Finance Corporation (IFC)
Host Nhung Cao Programme Assistance
International Finance Corporation (IFC)
Host Minh Nguyet Pham Upstream Analyst
International Finance Corporation (IFC)
Host Viera Feckova Senior Operation Officer
International Finance Corporation (IFC)
Host Dirk Sommer Senior Officer
World Bank Host Ashraf El-Arini Environmental Specialist
World Bank Host Hoa TrinhWRG 30 Vietnam Program Coordinator
World Bank Host Thuy Duong Senior Environmental Specialist
GA Circular Host Ashwin Subramaniam Founder & CEO
GA Circular Host Laura Allen Co-founder & COO
GA Circular Host Tam Nguyen Project Director
GA Circular Host Thao Pham Project Executive
GA Circular Host Samantha Phillips Project Executive
GA Circular Host Joshua Tan Project Executive
GA Circular Host Juline Lew Project Executive
18 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 4:
METHODOLOGY DIFFERENCES BETWEEN MATERIAL FLOW ANALYSIS CONDUCTED UNDER THIS WBG STUDY AND IUCN/UNEP STUDY
4 IUCN and UNEP, Preliminary result of “National Guidance for Plastic Pollution Hotspotting and Shaping Action: Hotspot Results For Vietnam” (2019)
Comparison Between Material Flow Analysis of This Study and the International Union for Conservation of Nature (IUCN) and United Nations Environment Programme (UNEP) Study for National Guidance for Plastic Pollution Hot spotting and Shaping Action
No. Methodology Areas
MFA under Market Study by WBG
IUCN and UNEP MFA for National Guidance for Plastic Pollution Hot spotting and Shaping Action4
1 Key Objective
To define the addressable market size in terms of tonnes and market value in plastics circularity, from production to disposal, in Vietnam. To identify the barriers and opportunities for plastics recycling and other areas of plastics circularity (i.e., reuse).
To provide Vietnam with a common methodological framework to prioritize interventions to tackle plastic pollution through identification of hotspots on plastic leakage and impacts along the value chain. Hotspots covered include polymer, application, sector, region, and waste management.
2 Materials Studied
MFA covers plastics from production until post-consump-tion for all products under the 4 key resins (PET Packaging, PET Polyester, PP, HDPE, LDPE/LLDPE).
Thus, total plastic tons covered in MFA is
4.0 million tonnes (2019).
MFA covers the input (import of primary form, products and waste and local production) and output (i.e. the flow/final destination of plastic) for all plastic types with the major resins in focus being PP, LDPE, HDPE, PVC, Polyester, PET Polyester, PET and PS. Remaining plastic types have been grouped under others.
Thus, the total plastic covered in MFA is approximately 7 million tonnes (2018).
APPENDIX 4: METHODOLOGY DIFFERENCES BETWEEN MATERIAL FLOW ANALYSIS CONDUCTED UNDER THIS WBG STUDY AND IUCN/UNEP STUDY | 19
No. Methodology Areas MFA under Market Study by WBG
IUCN and UNEP MFA for National Guidance for Plastic Pollution Hot spotting and Shaping Action5
3 Data Collection
The methodology uses in-depth stakeholder interviews with 57 public and private sector stakeholders from resin producers, convertors, recyclers and associations and additional consultation with more stakeholders. Data from these interviews is coupled with other data sources (e.g., VPA, Customs Department, UN Comtrade).
The methodology used employs data from available sources such as Comtrade, GreenHub Vietnam and Vietnam Material Marketplace report.
4 Type of Plastic Products
The objective of these MFAs is to provide a directional estimate of recycling rates for the resins of focus and they are not intended to account for every ton of plastic produced, consumed, or recycled in Vietnam.
MFA hotspot analysis covers 10 product applications that are short lived and are said to be 80% of total plastic (2017). The applications are food packaging, straws, polystyrene foam, disposable items, flakes, package belt, single use plastic foam, bottles, bottle cap and nylon bag.
5 IUCN and UNEP, Preliminary result of “National Guidance for Plastic Pollution Hotspotting and Shaping Action: Hotspot Results For Vietnam” (2019)
Separately, WWF Vietnam will be working on a material flow analysis (MFA) to assess the status quo of the waste management system and plastic packaging material flows and recommend a relevant Extended Producer Responsibility (EPR) scheme for Vietnam. This will be done as part of WWF’s study titled “Assessing the implementation of an EPR system for packaging waste in Vietnam”. However, the MFA work as part of the WWF study has not yet begun and thus a detailed comparison between the methodologies of the WWF Vietnam study and this study is not yet possible.
Photo: Susie Hedberg - shutterstock
20 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APP
END
IX 5
:
RES
IN U
SAG
E B
REA
KD
OW
N B
Y IN
DU
STR
Y S
ECTO
RB
reak
dow
n of
Res
in U
sage
Per
Indu
stry
Sec
tor a
nd t
he C
orre
spon
ding
Mea
n Pl
asti
c Pr
oduc
t Li
fesp
an P
er In
dust
ry S
ecto
r6
6 Pl
astic
s In
stitu
te o
f Tha
iland
(fo
r per
cent
age
bre
akd
ow
n fo
r end
-use
ind
ustr
y)
Indu
stry
Sec
tor
Mea
n of
Pl
asti
c Pr
oduc
t Li
fesp
an
(Yea
rs)
Stan
dard
D
evia
tion
Mat
eria
l Bre
akdo
wn
LLD
PE/L
DPE
HD
PEPP
PET
Bot
tle
+ Fi
lmPE
T Po
lyes
ter
Tonn
es
(20
19)
Prop
orti
on
(20
19)
Tonn
es
(20
19)
Prop
orti
on
(20
19)
Tonn
es
(20
19)
Prop
ortio
n (2
019
)To
nnes
(2
019
)Pr
opor
tion
(2
019
)To
nnes
(2
019
)Pr
opor
tion
(2
019
)
Pack
agin
g0
0.83
768,
813
83%
447,
227
60%
713,
891
50%
369,
994
95%
00%
Co
nstr
ucti
on
200.
839,
263
1%13
4,16
818
%57
,111
4%0
0%12
3,17
330
%
E&
E10
0.83
55,5
776%
29,8
154%
142,
778
10%
7,78
92%
00%
Aut
om
oti
ve15
0.83
00%
7,45
41%
214,
167
15%
00%
00%
Text
ile5
0.83
00%
00%
00%
00%
287,
404
70%
Rec
reat
ion
100.
830
0%7,
454
1%71
,389
5%0
0%0
0%
Foo
twea
r2
0.83
37,0
514%
00%
00%
00%
00%
Fila
men
t no
n-te
xtile
00.
830
0%59
,630
8%42
,833
3%0
0%0
0%
Med
ical
00.
830
0%0
0%14
,278
1%3,
895
1%0
0%
Lens
00.
830
0%0
0%0
0%0
0%0
0%
Ag
ricu
ltur
e5
0.83
37,0
514%
37,2
695%
14,2
781%
00%
00%
Ho
usew
are
50.
839,
263
1%14
,908
2%14
2,77
810
%3,
895
1%0
0%
Safe
ty5
0.83
00%
00%
14,2
781%
3,89
51%
00%
Secu
rity
50.
839,
263
1%7,
454
1%0
0%0
0%0
0%
Tota
l92
6,28
010
0%74
5,37
810
0%1,
427,
782
100%
389,
467
100%
410,
577
100%
APPENDIX 5: RESIN USAGE BREAKDOWN BY INDUSTRY SECTOR | 21
Notes:
• The breakdown above is used to determine 2019 disposal amounts, by determining the amounts consumed in 2019 and kept in use beyond 2019, and the amounts from past years that are being disposed of in 2019
• Data from the Plastics Institute of Thailand (PIT) has been used to calculate the material breakdown as Vietnam does not have such data available, and PIT data has been deemed
the most representative
Normal Distribution Curves Used Showing Average Lifespan of Plastic Products from Different Resins7
7 Plastics Institute of Thailand (as Vietnam specific data was not available), GA Circular modelling
Photo: Olga Miltsova - shutterstock
22 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 6:
NET RESIN IMPORT/EXPORT AND NET SEMI-FINISHED PRODUCT IMPORT/EXPORT
APPENDIX 6A: HS CODES USED FOR NET RESIN IMPORT/EXPORT AND NET SEMI-FINISHED PRODUCT IMPORT/EXPORT CALCULATIONS
The following table provides the descriptions of the HS codes used to determine the net import/export of resin and semi-finished product for each of the resin types studied.
HS Codes Used and Respective Descriptions
HS Code HS DescriptionType of Resin
Primary form/ Semi-finished Product/ Waste
390110 Polyethylene having a specific gravity of less than 0.94 (TNE) PE Primary
39011012Linear low-density polyethylene in liquid or paste form (TNE)
LLDPE Primary
39011019Other polyethylene of specific gravity below 0.94 in liquid or paste form (TNE)
LDPE Primary
39011092
Linear low-density polyethylene in other primary forms (TNE): in powder form
LLDPE Primary
Pharmaceutical grade, granules
Cable grade, granules
Used in manufacture of telephonic or electric wires
Other
39011099
Other polyethylene of specific gravity below 0.94 in other primary forms (TNE): in powder form
LDPE Primary
Pharmaceutical grade, granules
Cable grade, granules
Used in manufacture of telephonic or electric wires
Other
APPENDIX 6: NET RESIN IMPORT/EXPORT AND NET SEMI-FINISHED PRODUCT IMPORT/EXPORT | 23
HS Code HS Description Type of Resin Primary form/ Semi-finished Product/ Waste
390120 Polyethylene of specific gravity 0.94 or more (TNE) PE Primary
In powder form
Pharmaceutical grade, granules
Cable grade, granules
Used in manufacture of telephonic or electric wires
Other
390130 Ethylene polymers; in primary forms, ethylene-vinyl acetate copolymers PE Primary
In powder form
In liquids or pastes
In granules
Other
390140Polymers of ethylene, in primary forms. ethylene-alpha-olefin copolymers, having a specific gravity of less than 0.94
PE Primary
In dispersion
Other than in dispersion
390190 Ethylene polymers; in primary forms, n.e.c. in heading no. 3901 PE Primary
39019040 In dispersion
39019090
In powder form
In liquids or pastes
In granules
Other
390210 Propylene, other olefin polymers; polypropylene in primary forms PP Primary
390210
In dispersion
In powder form
Used in manufacture of telephonic or electric wires
Liquids or paste
Other
24 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
HS Code HS Description Type of Resin Primary form/ Semi-finished Product/ Waste
390230 Propylene copolymers: in the form of liquids or pastes PP Primary
39023030 In the form of liquids or pastes
39023090
In powder form
Used in manufacture of telephonic or electric wires
Other
390290 Propylene, other olefin polymers; n.e.s. in heading no. 3902, in primary forms. PP Primary
Chlorinated polypropylene used for printing ink formulation (TNE)
39029090
In powder form
In liquids or pastes
In granules
Other
390760 Polyethylene terephthalate; in primary forms PET Primary
390761Polyethylene terephthalate; in primary forms, having a viscosity of 78 ml/g or higher (TNE)
PET Primary
390769Polyethylene terephthalate; in primary forms, having a viscosity of less than 78ml/g
PET Primary
39076910Other polyethylene terephthalate in the form of granules (TNE)
39076990Other polyethylene terephthalate excluding those in the form of granules (TNE)
391610 Polymers of ethylene PE Semi-finished Product
39161010Monofilament of ethylene polymers of which cross-sectional dimension exceeds 1mm (TNE)
3916102000Rods sticks & profile shapes of ethylene polymers (TNE)
391721 Plastics; tubes, pipes, and hoses thereof, rigid, of polymers of ethylene PE Semi-finished Product
APPENDIX 6: NET RESIN IMPORT/EXPORT AND NET SEMI-FINISHED PRODUCT IMPORT/EXPORT | 25
HS Code HS Description Type of Resin Primary form/ Semi-finished Product/ Waste
39172100
Porous tubes suitable for agricultural watering
Other
391722 Plastics; tubes, pipes, and hoses thereof, rigid, of polymers of propylene PP Semi-finished Product
39172200
Porous tubes suitable for agricultural watering
Other
391890
Floor, wall, or ceiling coverings; of plastics (excluding polymers of vinyl chloride), whether self-adhesive, in rolls or in the form of tiles
PE Semi-finished Product
39189011 Floor tiles of polyethylene (TNE)
39189013Other floor coverings of polyethylene (TNE)
39189091Wall or ceiling coverings of polyethylene (TNE)
391910Self-adhesive plates sheets film foil tape strip & other flat shapes of polyethylene in rolls of width not over 200mm (TNE)
PE Semi-finished Product
39191020
Tapes used in the manufacture of telephonic or electric wires
Other
392010
Plastics: plates, sheets, film, foil, and strip of polymers of ethylene, non-cellular and not reinforced, supported, or similarly combined with other materials
PE Semi-finished Product
39201011
Rigid plates & sheets of polymers of ethylene non-cellular & not reinforced laminated supported or combined with other materials (TNE)
39201019
Non rigid plates & sheets of polymers of ethylene non-cellular & not reinforced laminated supported or combined with other materials (TNE)
39201090
Film foil & strip of polymers of ethylene non-cellular & not reinforced laminated supported or combined with other materials (TNE)
26 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
HS Code HS Description Type of Resin Primary form/ Semi-finished Product/ Waste
392020
Plastics: of polymers of propylene, plates, sheets, film, foil, and strip, non-cellular and not reinforced, laminated, supported, or similarly combined with other materials
PP Semi-finished Product
39202010
Biaxially oriented polypropylene film non-cellular & not reinforced laminated supported or combined with other materials (TNE)
39202091
Other plates & sheets of polymers of propylene non-cellular & not reinforced laminated supported or combined with other materials (TNE)
39202099
Other film foil & strip of polymers of propylene non-cellular & not reinforced laminated supported or combined with other materials (TNE)
392062
plastics: plates, sheets, fil, foil, and strip, of PET, non-cellular and not reinforced, laminated, supported, or similarly combined with other materials
PET Semi-finished Product
39206210
Plates & sheets of polyethylene terephthalate non-cellular & reinforced laminated supported or combined with other materials (TNE)
39206290
Film foil & strips of polyethylene terephthalate non-cellular & reinforced laminated supported or combined with other materials (TNE)
392063
Plastics: plates, sheets, film, foil, and strip, of unsaturated polyesters, non-cellular and not reinforced, laminated, supported, or similarly combined with other materials
Polyester Semi-finished Product
Used as an adhesive by melting
Other
392069
Plastics: plates, sheets, film, foil, and strip (not self-adhesive), of polyesters n.e.c. in heading no. 3920, non-cellular and not reinforced, laminated, supported, or similarly combined with other materials
Polyester Semi-finished Product
Used as an adhesive by melting
Other
APPENDIX 6: NET RESIN IMPORT/EXPORT AND NET SEMI-FINISHED PRODUCT IMPORT/EXPORT | 27
HS Code HS Description Type of Resin Primary form/ Semi-finished Product/ Waste
392119Plastics; plates, sheets, film, foil, and strip, of plastics n.e.s. in heading no. 3921, cellular
PP Semi-finished Product
3921192015
Other plates, sheets, film, foil, and strip, of plastics, cellular: of other plastics other than of polymers of styrene, of polymers of vinyl chloride, of polyurethanes and of regenerated cellulose: rigid: of other addition polymerisation products: plates and sheets, of polypropylene
3921192019
Other plates, sheets, film, foil, and strip, of plastics, cellular: of other plastics: rigid: of other addition polymerisation products: other than plates and sheets, of polypropylene
392321Ethylene polymers; sacks and bags (including cones), for the conveyance or packing of goods
PE Semi-finished Product
39232111
Aseptic bags of ethylene polymers reinforced with aluminium foil of width 315mm or more & length 410mm or more incorporating a sealed gland
39232119Other aseptic bags of ethylene polymers reinforced with aluminium foil
39232191
Aseptic bags of ethylene polymers not reinforced with aluminium foil of width 315mm or more & length 410mm or more incorporating a sealed gland
39232199Sacks & other aseptic bags of ethylene polymers not reinforced with aluminium foil
48239030 Die cut polyethylene coated paperboard used for making paper cups PE Semi-finished Product
540234 Textured polypropylene yarn not for retail (kgm) PP Semi-finished Product
540244
Yarn, synthetic; filament, monofilament (less than 67 decitex), other than high tenacity or textured yarn, elastomeric, single, untwisted or twisted 50 turns or less per metre, not for retail sale, not sewing thread
Polyester Semi-finished Product
28 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
HS Code HS Description Type of Resin Primary form/ Semi-finished Product/ Waste
540244100
Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex. other yarn, single, untwisted or with a twist not exceeding 50 turns per metre: elastomeric: of polyesters
540248Other polypropylene yarn single untwisted or a twist not over 50 turns per metre not for retail (kgm)
PP Semi-finished Product
540253Other polypropylene yarn single with a twist over 50 turns per metre not for retail (kgm)
PP Semi-finished Product
540263 Other polypropylene yarn multiple or cabled not for retail (kgm) PP Semi-finished Product
540412Polypropylene monofilament of 67 decitex or more & no cross-sectional dimension exceeds 1mm (kgm)
PP Semi-finished Product
540710Fabrics, woven; from high tenacity yarn, of nylon, other polyamides or of polyesters
Polyesters Semi-finished Product
54071021
Woven tyre fabrics & conveyor duck of high tenacity yarn of nylon or other polyamides or polyesters unbleached (MTK)
54071029
Woven tyre fabrics & conveyor duck of high tenacity yarn of nylon or other polyamides or polyesters not unbleached (MTK)
54071091Other woven fabrics of high tenacity yarn of nylon or other polyamides or polyesters unbleached (mtk)
54071099Other woven fabrics of high tenacity yarn of nylon or other polyamides or polyesters not unbleached (mtk)
540751Fabrics, woven; containing 85% or more by weight of textured polyester filaments, unbleached/ bleached
Polyester Semi-finished Product
Fabrics, woven; containing 85% or more by weight of textured polyester filaments, unbleached/ bleached
Other
540752Fabrics, woven; containing 85% or more by weight of textured polyester filaments, dyed
Polyester Semi-finished Product
APPENDIX 6: NET RESIN IMPORT/EXPORT AND NET SEMI-FINISHED PRODUCT IMPORT/EXPORT | 29
HS Code HS Description Type of Resin Primary form/ Semi-finished Product/ Waste
540753Fabrics, woven; containing 85% or more by weight of textured polyester filaments, of yarns of different colours
Polyester Semi-finished Product
540754Fabrics, woven; containing 85% or more by weight of textured polyester filaments, printed
Polyester Semi-finished Product
540761Fabrics, woven; containing 85% or more by weight of non-textured polyester filaments
Polyester Semi-finished Product
54076110 Taffeta (including umbrella cloth)
Other
540769Fabrics, woven; containing less than 85% by weight of non-textured polyester filaments
Polyester Semi-finished Product
54076910 Unbleached/ Bleached
540220
Yarn: (not sewing thread), high tenacity yarn of polyesters (including synthetic monofilament of less than 67 decitex), not put up for retail sale
Polyester Semi-finished Product
540233
Yarn: textured, (not sewing thread), of polyesters (including synthetic monofilament of less than 67 decitex), not put up for retail sale
Polyester Semi-finished Product
540246
Yarn: synthetic; filament, monofilament (less than 67 decitex), of polyesters (not high tenacity or textured), partially oriented, single, untwisted or twisted 50 turns or less per metre, not for retail sale, not sewing thread
Polyester Semi-finished Product
540247
Yarn: synthetic; filament, monofilament (less than 67 decitex), polyesters (not high tenacity or textured), not partially oriented, single, untwisted or twisted 50 turns or less per metre, not for retail sale, not sewing thread
Polyester Semi-finished Product
540252
Yarn: (not sewing thread), single, of polyesters (including synthetic monofilament of less than 67 decitex), with a twist exceeding 50 turns per metre, not put up for retail sale, not textured, not high tenacity
Polyester Semi-finished Product
540262
Yarn: (not sewing thread), multiple (folded) or cabled, of polyesters (including synthetic monofilament of less than 67 decitex), not put up for retail sale, not textured, not high tenacity
Polyester Semi-finished Product
30 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
HS Code HS Description Type of Resin Primary form/ Semi-finished Product/ Waste
550120 Fibers: synthetic filament tow, of polyesters Polyester Semi-finished Product
550140 Synthetic filament tow of polypropylene (kgm) PP Semi-finished Product
550320Fibers: synthetic staple fibres, of polyesters, not carded, combed, or otherwise processed for spinning
Polyester Semi-finished Product
550340Synthetic staple fibers not carded combed or otherwise processed for spinning of polypropylene (kgm)
PP Semi-finished Product
550620Fibers: synthetic staple fibres, of polyesters, carded, combed, or otherwise processed for spinning
Polyester Semi-finished Product
550640Synthetic staple fibers carded combed or otherwise processed for spinning of polypropylene (kgm)
PP Semi-finished Product
56013020 Polypropylene fiber flock PP Semi-finished Product
APPENDIX 6B: COMPARISON OF IMPORT/ EXPORT DATA FROM VARIOUS SOURCES
The import and export data used for the MFA in this report is sourced from VPA, Vietnam Customs Data and UN Comtrade. The differences of resin and product import-export amounts between VPA data, Vietnam Customs Data and UN Comtrade data are summarized in the table below. As per the legend below, data points highlighted in green are the values used to determine the net import and export of resins and semi-finished products in Vietnam. The cells highlighted in dark grey are data points of Vietnam Customs Data for semi-finished products, which were determined by converting 70% of the USD value of the semi-finished products imported/exported into tonnage (as recommended by VPA).
As the table below shows, the tonnages differed between VPA data, Vietnam Customs Data and UN Comtrade. Some of the Vietnam Customs Data points were deemed incorrect, as they are not possible (e.g., Vietnam could not have had 647 million tonnes of PE semi-finished product imports, as it is more than the global consumption of PE), hence were not used when determining the net import/export into Vietnam. The
values deemed incorrect are denoted with *^”). Finally, VPA provided estimates of semi-finished and finished product exports (in the column denoted with “*”) but was unable to provide estimates of semi-finished and finished product imports, thus finished product imports and exports could not be considered (as accounting for finished product exports without accounting for finished product imports would incorrectly reduce local consumption and post-use disposal). Thus, semi-finished products figures were used for both imports and exports.
Legend
Value Used in determining Net Import/ Export
Vietnam Customs data points for semi-finished products, determined by converting 70% of the USD value (as recommended by VPA)
^ Incorrect data points
*VPA estimates of semi-finished and finished product exports
APPENDIX 6: NET RESIN IMPORT/EXPORT AND NET SEMI-FINISHED PRODUCT IMPORT/EXPORT | 31
Resin and Product Import (TPY)Import of Resins and Semi-finished Products as According to VPA Data, UN Comtrade Data and Vietnam Customs Data (TPY)
Resin
Resin Imports Semi-Product Imports
VPA
Vietnam Customs Data (Based on 100% of USD Value)
UN Comtrade (VN as reporting for imports)
VPA
Vietnam Customs Data (Based on 70% of USD Value)
UN Comtrade (VN as reporting for imports)
PET Packaging
190,400 31,800 30,900 - 37,700 108,500
PET Polyester 321,300 528,000 442,600 - 116,700 817,800
PP 1,400,400 1,475,000 1,158,300 - 95,500 108,500
PE 2,305,300 3,119,900 1,944,500 - 647,332,900 ^ 149,400
Resin and Product Export (TPY)Export of Resins and Semi-finished Products as According to VPA Data, UN Comtrade Data and Vietnam Customs Data (TPY)
Resin
Resin Exports Semi-Product Exports
VPA
Vietnam Customs Data (Based on 100% of USD Value)
UN Comtrade (VN as reporting for imports)
VPA*
Vietnam Customs Data (Based on 70% of USD Value)
UN Comtrade (VN as reporting for imports)
PET Packaging 373,300 368,800 321,100 146,300 453,132,400 ^ 10,100
PET Polyester 36,600 27,400 22,400 321,3001,085,611,800 ^
318,500
PP 371,300 330,100 212,800 571,800 447,097,500 ^ 1,700
PE 261,600 278,200 90,200 959,9001,025,507,800 ^
249,900
Net Resin and Product Import - Export (TPY)Net Import/Export of Resins and Semi-Finished Products into Vietnam
Resin Net Resin Import-Export Net Semi-Product Import-Export
PET Packaging -182,900 98,400
PET Polyester 284,700 499,300
PP 1,144,900 106,800
PE 2,027,100 -100,500
Notes:
• A negative value indicates a net export of material. This is the case for PET Packaging resins and PE semi-finished products where 182,900 tonnes and 100,500 tonnes respectively, was exported out of Vietnam in 2019.
• A positive value indicates a net import of material.
32 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 7:
DATA SOURCES AND KEY ASSUMPTIONS FOR MATERIAL VALUE LOSS CALCULATIONS
The material value loss calculations are based on low and high range estimations of the CFR rate. These ranges are used to account for 2 factors:
1. The fluctuation in CFR throughout the year based on seasonality and other variations - e.g., due to fluctuations in virgin price which affects recycled plastic demand and thus CFR rates. CFR rates also shift against each other - for example, when recycled PP (rPP) is more attractive recyclers will process more PP, which given that recycling capacity is essentially the same, results in lower recycling for HDPE and/or LDPE (as polyolefin recyclers can generally recycle any 3 of these resins, and the proportion between the 3 will change depending on market conditions); and
2. The variance of CFR estimates provided by different stakeholders.
CFR rates are informed by past studies by GA Circular focused on volumes of different plastics collected by the informal sector and what recyclers recycle. All CFR rate ranges have been triangulated against estimated recycling capacity (factoring in utilization and scrap plastic imports).
The term Most Valuable Recycled Product (MVRP) for each resin refers to the best circular scenario based on an assumed optimal proportion of various recycled products. The calculation of the price of MVRP uses an average of the prices of various possible recycled products weighted according to the proportions of each type of recycled product under a best-case scenario of maximum value unlocked for the resin. This method takes into consideration that it is not realistic to expect 100% of resins to be recycled into the recycled product which has the most value.
PET PACKAGING
Price (USD/ton)Food grade rPET $1,051
rPSF/rPOY $960
Non-food grade rPET $860
Flakes $714
MVRP Allocation %Food grade rPET 50%
rPSF 15%
Non-food grade rPET 15%
Flakes (Clear) 15%
MVRP Weighted Average $953.2
Current RP breakdown (%)
Food grade rPET 0%
rPSF/rPOY 0%
Non-food grade rPET 57%
Flakes 43%
Total 100%
APPENDIX 7: DATA SOURCES AND KEY ASSUMPTIONS FOR MATERIAL VALUE LOSS CALCULATIONS | 33
PET Packaging starting data points
Data Points Value Units
PET Packaging Consumption 389,467 TPY
CFR rate (PET Packaging) (Low Range) 35% %
CFR rate (PET Packaging) (High Range) 65% %
CFR Tonnes (PET Packaging) (Low Range) 136,313 TPY
CFR Tonnes (PET Packaging) (High Range) 253,154 TPY
Price of MVRP under weighted average $953.23 USD/Tonne
PET Packaging
Post-Consumer Destination Tonnage
Price (USD/Tonne)
Price difference from MVRP
Total Value Lost (Millions USD)
Total Lost(Millions USD)
Low Range Estimate of Recycling Rate
Food Grade 0 $1,051 -$98 $0
$263
PSF/POY 0 $960 -$7 $0
Non-food grade 77,893 $860 $93 $7
Flakes 58,420 $714 $239 $14
Not recycled 253,154 $0 $953 $241
High Range Estimate of Recycling Rate
Food Grade 0 $1,051 -$98 $0
$169
PSF/POY 0 $960 -$7 $0
Non-food grade 144,659 $860 $93 $13
Flakes 108,494 $714 $239 $26
Not recycled 136,313 $0 $953 $130
34 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
PET Packaging
Post- Consumer Destination
Post- Consumer Destination (as a % of market inputs)
Weighted average price difference from MVRP
Price yield(a)
Volume yield (b)
Value yield(a x b)[Y-AXIS]
Collected for recycling rate [X-AXIS]
Economic value unlocked [X-AXIS x Y-AXIS]
Low Range Estimate of Recycling Rate
Food Grade 0.00%
$156 83.65% 93.33% 78.07% 35.00% 27.32%
PSF/POY 0.00%
Non-food grade 57.14%
Flakes 42.86%
Not recycled
High Range Estimate of Recycling Rate
Food Grade 0.00%
$156 83.65% 93.33% 78.07% 65.00% 50.75%
PSF/POY 0.00%
Non-food grade 57.14%
Flakes 42.86%
Not recycled
PET Packaging
Post-Consumer Destination
Theoretical max of economic value unlocked
Total Lost (Millions USD)
Value unlocked(after factoring in process loss)
Total Lost (Millions USD)
Value lost
Total Lost (Millions USD)
Low Range Estimate of Recycling Rate
Food Grade
$371
$101 $270
PSF/POY
Non-food grade
Flakes
Not recycled
High Range Estimate of Recycling Rate
Food Grade
$188 $183
PSF/POY
Non-food grade
Flakes
Not recycled
APPENDIX 7: DATA SOURCES AND KEY ASSUMPTIONS FOR MATERIAL VALUE LOSS CALCULATIONS | 35
PET POLYESTER
MVRP Allocation %
rPSF/rPOY 43%
Flakes 57%
MVRP Weighted Average $819.3
Current RP breakdown (%)
rPSF/rPOY 0%
Flakes 100%
PET Polyester starting data points
Data Points Value Units
PET Polyester Consumption 410,577 TPY
CFR rate (PET Polyester) (Low Range) 0% %
CFR rate (PET Polyester) (High Range) 2% %
CFR Tonnes (PET Polyester) (Low Range) 0 TPY
CFR Tonnes (PET Polyester) (High Range) 8,212 TPY
Price of MVRP under weighted average $819.31 USD/Tonne
PET Polyester
Post-Consumer Destination Tonnage Price (USD/
Tonne)
Price difference from MVRP
Total Value Lost (Millions USD)
Total Lost(Millions USD)
Low Range Estimate of Recycling Rate
Recycled 0 $714 $106 $0
$336Not recycled 410,577 $0 $819 $336
High Range Estimate of Recycling Rate
Recycled 8,212 $714 $106 $1
$331Not recycled 402,366 $0 $819 $330
36 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
PET Polyester
Post-Consumer Destination (as a % of market inputs)
Weighted average price difference from MVRP
Price yield(a)
Volume yield (b)
Value yield(a x b)[Y-AXIS]
Collected for recycling rate [X-AXIS]
Economic value unlocked [X-AXIS x Y-AXIS]
100.00%$106 87.12% 90.00% 78.41% 0.00% 0.00%
100.00%$106 87.12% 90.00% 78.41% 2.00% 1.57%
PET Polyester
Post-Consumer Destination
Theoretical max of economic value unlocked(Millions USD)
Value unlocked after factoring in process loss(Millions USD)
Total value lost (Millions USD)
Low Range Estimate of Recycling Rate
Recycled
$336
$0 $336Not recycled
High Range Estimate of Recycling Rate
Recycled$5 $331
Not recycled
PP
Price (USD/ton)
Food grade rPP $1,041
Natural rPP $876
White rPP $756
Colored rPP $756
Black rPP $529
MVRP Allocation %
Food grade rPP 20%
Natural rPP 40%
White rPP 20%
Colored rPP 10%
Black rPP 10%
MVRP Weighted Average $838.3
APPENDIX 7: DATA SOURCES AND KEY ASSUMPTIONS FOR MATERIAL VALUE LOSS CALCULATIONS | 37
PP starting data points
Data Points Value Units
PP Consumption 1,427,782 TPY
CFR rate (PP) (Low Range) 20% %
CFR rate (PP) (High Range) 50% %
CFR Tonnes (PP) (Low Range) 285,556 TPY
CFR Tonnes (PP) (High Range) 713,891 TPY
Price of MVRP under weighted average $838.32 USD/Tonne
PP
Post-Consumer Destination Tonnages Prices (USD)
Natural rPP 57,111 $876
White rPP 57,111 $756
Colored rPP 71,389 $756
Black rPP 99,945 $529
Not recycled 1,142,225 0
Natural rPP 142,778 $876
White rPP 142,778 $756
Colored rPP 178,473 $756
Black rPP 249,862 $529
Not recycled 713,891 0
38 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
PP
Post-Consumer Destination Tonnage Price (USD/Tonne)
Price difference from MVRP
Total Value Lost (Millions USD)
Total Lost (Millions USD)
Low Range Estimate of Recycling Rate
Natural rPP 57,111 $876 -$38 -$2
$997
White rPP 57,111 $756 $82 $5
Colored rPP 71,389 $756 $82 $6
Black rPP 99,945 $529 $309 $31
Not recycled 1,142,225 $0 $838 $958
High Range Estimate of Recycling Rate
Natural rPP 142,778 $876 -$38 -$7
$671
White rPP 142,778 $756 $82 $21
Colored rPP 178,473 $756 $82 $59
Black rPP 249,862 $529 $309 $0
Not recycled 713,891 $0 $838 $598
PP
Post-Consumer Destination
Post- Consumer Destination (as a % of market inputs)
Weighted average price difference from MVRP
Price yield(a)
Volume yield (b)
Value yield(a x b)[Y-AXIS]
Collected for recycling rate [X-AXIS]
Economic value unlocked [X-AXIS x Y-AXIS]
Low Range Estimate of Recycling Rate
Natural rPP 20.00%
$138 83.57% 90.00% 75.22% 20.00% 15.04%
White rPP 20.00%
Colored rPP 25.00%
Black rPP 35.00%
Not recycled
High Range Estimate of Recycling Rate
Natural rPP 20.00%
$138 83.57% 90.00% 75.22% 50.00% 37.61%
White rPP 20.00%
Colored rPP 25.00%
Black rPP 35.00%
Not recycled
APPENDIX 7: DATA SOURCES AND KEY ASSUMPTIONS FOR MATERIAL VALUE LOSS CALCULATIONS | 39
PP
Post-Consumer Destination Theoretical max of economic value unlocked(Millions USD)
Value unlocked after factoring in process loss(Millions USD)
Total value lost (Millions USD)
Low Range Estimate of Recycling Rate
Natural rPP
$1,197
$180 $1,017
White rPP
Colored rPP
Black rPP
Not recycled
High Range Estimate of Recycling Rate
Natural rPP
$450 $747
White rPP
Colored rPP
Black rPP
Not recycled
HDPE
Price (USD/ton)
Food grade rHDPE $1,441
Natural rHDPE $996
White rHPDE $722
Colored rPHDE $664
Black rHDPE $645
MVRP Allocation %
Food grade rHDPE 20%
Natural rHDPE 40%
White rHPDE 15%
Colored rPHDE 15%
Black rHDPE 10%
MVRP Weighted Average $959.2
Current RP breakdown
Food grade rHDPE 0%
Natural rHDPE 20%
White rHPDE 20%
Colored rPHDE 25%
Black rHDPE 35%
40 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
HDPE starting data points
Data Points Value Units
HDPE Consumption 745,378 TPY
CFR rate (HDPE) (Low Range) 20% %
CFR rate (HDPE) (High Range) 50% %
CFR Tonnes (HDPE) (Low Range) 149,076 TPY
CFR Tonnes (HDPE) (High Range) 372,689 TPY
Price of MVRP under weighted average $959.23 USD/Tonne
HDPE
Post-Consumer Destination Tonnage Price (USD/Tonne)
Price difference from MVRP
Total Value Lost (Millions USD)
Total Lost (Millions USD)
Low Range Estimate of Recycling Rate
Natural rHDPE 29,815 $996 -$37 -$1
$605
Pipe Grade Black rHDPE 29,815 $722 $237 $7
GP Black rHDPE 37,269 $664 $295 $11
Mixed Colored Black rHDPE
52,176 $645 $314 $16
Not Recycled 596,303 $0 $959 $572
High Range Estimate of Recycling Rate
Natural rHDPE 74,538 $996 -$37 -$3
$441
Pipe Grade Black rHDPE 74,538 $722 $237 $18
GP Black rHDPE 93,172 $664 $295 $27
Mixed Colored Black rHDPE
130,441 $645 $314 $41
Not Recycled 372,689 $0 $959 $357
APPENDIX 7: DATA SOURCES AND KEY ASSUMPTIONS FOR MATERIAL VALUE LOSS CALCULATIONS | 41
HDPE
Post-Consumer Destination
Post-Consumer Destination (as a % of market inputs)
Weighted average price difference from MVRP
Price yield(a)
Volume yield (b)
Value yield(a x b)[Y-AXIS]
Collected for recycling rate [X-AXIS]
Economic value unlocked [X-AXIS x Y-AXIS]
Low Range Estimate of Recycling Rate
Natural rHDPE 20.00%
$224 76.68% 88.75% 68.05% 20.00% 13.61%
Pipe Grade Black rHDPE
20.00%
GP Black rHDPE 25.00%
Mixed Colored Black rHDPE
35.00%
Not Recycled
High Range Estimate of Recycling Rate
Natural rHDPE 20.00%
$224 76.68% 88.75% 68.05% 50.00% 34.03%
Pipe Grade Black rHDPE
20.00%
GP Black rHDPE 25.00%
Mixed Colored Black rHDPE
35.00%
Not Recycled
42 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
HDPE
Post-Consumer Destination Theoretical max of economic value unlocked (Millions USD)
Value unlocked after factoring in process loss (Millions USD)
Total value lost (Millions USD)
Low Range Estimate of Recycling Rate
Natural rHDPE
$715
$97 $618
Pipe Grade Black rHDPE
GP Black rHDPE
Mixed Colored Black rHDPE
Not Recycled
High Range Estimate of Recycling Rate
Natural rHDPE
$243 $472
Pipe Grade Black rHDPE
GP Black rHDPE
Mixed Colored Black rHDPE
Not Recycled
LDPE
Price (USD/ton)
rLDPE Natural pellets $1,008
rLDPE black pellets $945
rLDPE mixed colored pellets $735
MVRP Allocation %
rLDPE Natural pellets 30%
rLDPE black pellets 30%
rLDPE mixed colored pellets 40%
MVRP Weighted Average $879.90
Current RP breakdown
rLDPE Natural pellets 20%
rLDPE White pellets 20%
rLDPE black/colored pellets 60%
APPENDIX 7: DATA SOURCES AND KEY ASSUMPTIONS FOR MATERIAL VALUE LOSS CALCULATIONS | 43
LDPE starting data points
Data Points Value Units
LDPE Consumption 1,427,782 TPY
CFR rate (LDPE) (Low Range) 20% %
CFR rate (LDPE) (High Range) 50% %
CFR Tonnes (LDPE) (Low Range) 285,556 TPY
CFR Tonnes (LDPE) (High Range) 713,891 TPY
Price of MVRP under weighted average $879.90 USD/Tonne
LDPE
Post-Consumer Destination Tonnage Price (USD/Tonne)
Price difference from MVRP
Total Value Lost (Millions USD)
Total Lost (Millions USD)
Low Range Estimate of Recycling Rate
Natural 37,051 $1,008 -$128 -$5
$661
Black 37,051 $945 -$65 -$2
Mixed Colored 111,154 $735 $145 $16
Not recycled 741,024 $0 $880 $652
High Range Estimate of Recycling Rate
Natural 92,628 $1,008 -$128 -$12
$430
Black 92,628 $945 -$65 -$6
Mixed Colored 277,884 $735 $145 $40
Not recycled 463,140 $0 $880 $408
44 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
LDPE
Post-Consumer Destination
Post- Consumer Destination (as a % of market inputs)
Weighted average price difference from MVRP
Price yield(a)
Volume yield (b)
Value yield(a x b)[Y-AXIS]
Collected for recycling rate [X-AXIS]
Economic value unlocked [X-AXIS x Y-AXIS]
Low Range Estimate of Recycling Rate
Natural 20.00%
$48 94.51% 88.75% 83.88% 20.00% 16.78%
Black 20.00%
Mixed Colored 60.00%
Not recycled
High Range Estimate of Recycling Rate
Natural 20.00%
$48 94.51% 88.75% 83.88% 50.00% 41.94%
Black 20.00%
Mixed Colored 60.00%
Not recycled
Photo: Vitawin - shutterstock
APPENDIX 7: DATA SOURCES AND KEY ASSUMPTIONS FOR MATERIAL VALUE LOSS CALCULATIONS | 45
LDPE
Post-Consumer Destination Theoretical max of economic value unlocked (Millions USD)
Value unlocked after factoring in process loss (Millions USD)
Total value lost (Millions USD)
Low Range Estimate of Recycling Rate
Natural
$815
$137 $678
Black
Mixed Colored
Not recycled
High Range Estimate of Recycling Rate
Natural
$342 $473
Black
Mixed Colored
Not recycled
Summary of Material Value Lost for Each Resin
Resin Low Range (USD Millions) High Range (USD Millions)
PP $747 $1,017
HDPE $472 $618
LDPE/LLDPE $473 $678
PET Polyester $183 $270
PET Packaging $747 $1,017
Total $2,621 $3,600
46 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 8:
INFORMATION ON PLASTICS RECYCLERS IN VIETNAM
APPENDIX 8A: LIST OF FORMAL MECHANICAL RECYCLERS/PROCESSORS IN VIETNAM
List of All Known PET, PE, and PP Recyclers in Vietnam and the Corresponding Resin Type That They Process
Status RecyclerResins
PET PE PP
Operating & Capacities Known
Hoang Anh recycle company √ √ √
A Dong ADG Company √ √
Lam Tran Plastic Ltd. √ √
JP Plastic - Q.M.T Ltd. √ √ √
Phu Hung Plastic Ltd. √ √
Trinh Nghien Ltd. √ √
Vikohasan Ltd. √
Vinatic Hai Phong Ltd. √ √
H.A Plastic Ltd √ √
HL plastic √ √
Khanh Quynh Long An Ltd. √
Mai Tan Dat Ltd. √
Minh Hieu Sai Gon √ √ √
Nhat Nam Tra Vinh √ √
VietTrung Environmental Technology Co. Ltd. √ √
Viet Tin Plastic Ltd. √ √ √
Shun An Environment Technology √ √ √
Viet Nhat Plastic Ltd. √ √
Son Trang Plastic Ltd. √ √
Tan Phu Plastic Ltd. √
Dai Tin Phat Plastic Ltd. √ √
APPENDIX 8: INFORMATION ON PLASTICS RECYCLERS IN VIETNAM | 47
Status RecyclerResins
PET PE PP
Operating & Capacities Known
Nhat Nam Packaging Ltd. √ √
Hiep Phat Ltd. √ √
Nam Thien Sang Ltd. √ √
Ngu long Co. Ltd. √
Lavergne Ltd. √
Khanh Toan Ltd. √
Seido Ltd. √ √
Khai Thanh Trade and Production JSC √
Operating, but Capacities Unknown
Sunflower Investment Ltd. √
De Nhat Ltd. √
Quang Phat Ltd. √ √
Khang An Thinh Ltd. √
Dai A Ltd. √
Hung Long Plastic Ltd. √ √
API-DK Vietnam Ltd. √ √
Hanh Tinh Vang Ltd. √
Dong Nai Plastic √
Tan Hung Plastic Ltd. √ √
Ngu Long Co. Ltd. √
Cong Ty Linh Phat √
Tin Thanh Plastic Ltd. √ √
Hop Thuan Ltd. √
Vinh Lac Ltd. √ √
Huu Phat Ltd. √
Hung Dong Ltd. √ √ √
Mien Bac Plastic Ltd. √ √
Trang Yen Ltd. √ √
Thuan That Ltd. √ √
H.A Plastic Ltd. √ √
An Nhu Phuc Ltd. √ √
Bao Zheng Ltd. √ √
48 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
Status RecyclerResins
PET PE PP
Operating, but Capacities Unknown
Gia Nguyen Plastic Ltd. √ √
Vy Tuyen Ltd. √
PVN Ltd. √
Gia Vu recycled Plastic √ √ √
Ngoc Anh √
Rang Dong Plastic √
Hung Nghiep Formosa √
APPENDIX 8B: INFORMAL RECYCLER CAPACITY ESTIMATIONS (INCLUDING CRAFT VILLAGES)
8B.1 DETERMINING TOTAL INFORMAL RECYCLING CAPACITY OF CRAFT VILLAGES AND INFORMAL RECYCLERS
The table below provides the details as to how a lower limit and upper limit were determined for informal recycling capacity. As per the table, the estimates have been provided by the Vietnam Plastic Recyclers Association (VPRA). For reference, the capacity values are retrieved from media articles published between 2014 to 2019 and have been provided below. The VPRA is of the opinion that the figures reported by the media are in most cases significantly underreported.
8 Thoi Bao Kinh Dao, “Dong Mau Village Chipped Plastic': Constantly Polluted!” (2015)9 Tien Phong, “The break in of a scrap recycling furnace in Hanoi” (2014)10 Hanoimoi, “The recycling journey of scrap: The advantages and consequences” (2019)
Lower and Upper Limit Estimations for Craft Village and Informal Recycling Capacity in Vietnam
Estimates of Plastic Recycling Craft Village and Informal Sector Recyclers
Village
Estimate for 2019 Year by VPRAMedia Reported
Min MaxBasis of VRA EstimateTons/
YearTons/Year
Tons/Year
Notes regarding Media Reported volume
Dong Mau (Vinh Phuc)
96,000 144,0001-2 tonnes/ day/ household multiplied by 320 households.
2,400The estimated recycling craft village is from 150-200 tons of plastic / month.8
Trieu Khuc and Trung Van (Nam Tu Liem district)
63,000 90,0003-5tons/day/household multiplied by 70-80 Households.
9,600
(20 factories by 1.5 tons per day)
More than 20 factories in the area are still running machines operating continuously. Thao Vy recycling factory in hamlet is the second largest recycling factory in the village. Every day the factory produces more than 2 tons of finished plastic resins.9
Tan Trieu (Thanh Tri district)
19,200 19,200 Per Media reported 19,200Imports 60 tons of scrap per day.10
APPENDIX 8: INFORMATION ON PLASTICS RECYCLERS IN VIETNAM | 49
Estimates of Plastic Recycling Craft Village and Informal Sector Recyclers
Tien Duoc commune (Soc Son district)
28,200 35,2502-3 tons/day multiplied by 47 Households
18,000
At present, 47 households work in the commune. Each day the village imports about 60 tons of scrap plastic.11
Minh Khai craft village (Hung Yen province)
288,000 288,0002 tons/day/household multiplied by 480 Households.
6,000
(200 tonnes per day)
868 households participated in purchasing, classifying, preliminarily processing and recycling plastic scrap with approximately 480 households directly producing plastic.12 Each day, the village of Khoai imports about 200 tons of scrap.13
Tu Chau village, Lien Chau commune (Thanh Oai district);
28,800 43,20010-15% of the total capacity of Minh Khai.
18,000
At present, 47 households work in the commune. Each day the village imports about 60 tons of scrap plastic.14
Xa Cau village, Quang Phu Cau commune (Ung Hoa district);
28,800 43,20010-15% of the total capacity of Minh Khai.
18,000
Tien Duoc and Kim Lu communes (Soc Son district)
28,800 43,200about 10-15% of the total capacity of Minh Khai.
18,000
Southern area: Duc Hoa, Long An and Binh Chanh, Ho Chi Minh City.
400,000 900,000600-1000 informal recyclers. 800-1000 tons/recycler/year.
- -
Total 980,800 1,606,050
Note: For all households, assumption is 320 working days per year to account for 6 days a week of work, less major holiday periods (e.g., Tet holiday).
To not overestimate existing recycling capacity in Vietnam, the lower limit of craft villages and informal recycling capacity (980,800 TPY) has been used to determine the total estimated informal recycling utilization capacity and for each resin type.
11 Ibid.12 Ibid.13 Nhan Dan, “Long measure the trade village” (2018)14 Hanoimoi, “The recycling journey of scrap: The advantages and consequences” (2019)
50 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
8B.2 BREAKDOWN OF INFORMAL RECYCLING CAPACITY PER RESIN TYPE (PE, PET AND PP)Calculations Used to Derive the Estimated Utilization for Craft Villages/Informal Recyclers for Each Resin Type
Craft Villages/Informal Recycler Recycling Capacity Breakdown
Total Estimated Informal Recyclers Capacity (TPY) 980,800
Total Estimated Informal Recycler Utilization Capacity (TPY) 931,800
Breakdown of informal recycling capacity per resin type
PE (%) 35%
PP (%) 25%
PET (%) 8%
Estimated utilization for informal recycling capacity per resin type
PE (TPY) 326,100
PP (TPY) 232,900
PET (TPY) 78,500
Notes: • The assumed average utilization rate for informal recyclers is 95%. This rate has been applied across all the resin types.• The breakdown for informal recycling capacity per resin type (i.e., 35% for PE, 25% for PP and 8% for PET) is as per recommended
from Mr. Vuong, Chairman of VPRA. GA Circular is of the opinion that the PET percentage would be higher (given the demand for
PET), however, VPRA has requested the use of their estimates.
APPENDIX 8C: COMPARISON BETWEEN INSTALLED RECYCLING CAPACITY AND ESTIMATED UTILIZATION FOR THE DIFFERENT RESINS
PETEstimated Installed Recycling Capacity and Utilization Recycling Capacity for Formal and Informal/Pre-processors of PET Resin in Vietnam in 2019
Recycler Name Total Installed Capacity
Total Estimated Actual Utilization (73%)
Mai Tan Dat Ltd.
160,000
182,000
Minh Hieu Sai Gon
Vikohasan JSC
Khai Thanh Trade and Production JSC
Lavergne ltd., Co.
Shun An Environment Technology
HL plastic
Q.M.T - JP Plastic JSC
Hoang Anh recycle company
Others 88,800
Total (Rounded) 248,800
APPENDIX 8: INFORMATION ON PLASTICS RECYCLERS IN VIETNAM | 51
Recycler Name Total Installed Capacity
Total Estimated Actual Utilization (73%)
Estimated informal PET recyclers / pre-processors capacity (2019) 82,600 78,500
Estimated Net PET scrap import (2019) 64,400 64,400
TOTAL 395,800 324,900
Notes:
• Estimated formal recycling capacity is based on known formal recycling capacity of 160,000 TPY (based on interviews with 9 recyclers) which was extrapolated to account for an additional 5 recyclers which are believed to recycle this resin but whose capacity could not be reasonably estimated. The extrapolated value thus results in a total estimated formal PET recycling capacity of 248,800 TPY.
• The informal pre-processor capacity for PET is calculated as 8% of the total assumed utilization informal recycler capacity.
• Based on interviews with the recyclers the average utilization rate is estimated to be 73% for PET recycling in 2019. This figure has been used in the calculation of the total estimated actual utilization for formal recyclers while for informal recyclers/pre-processors the average utilization rate is assumed to be 95% (see Appendix 15 below).
• PET scrap export is an estimate and is based on the net of imports and exports. See Appendix 9 for the assumptions related to
scrap plastic imports and exports per resin.
PPEstimated Installed Recycling Capacity and Utilization Recycling Capacity for Formal and Informal/Pre-processors of PP Resin in Vietnam in 2019
Recycler Name Total Installed Capacity
Total Estimated Actual Utilization (74%)
A Dong ADG JSC
178,100 304,800
Lam Tran JSC
Q.M.T - JP Plastic JSC
Kho Van Phu Hung trade and services JSC
Trinh Nghien JSC
H.A resin - H.A Co., Ltd
Minh Hieu Sai Gon
Nhat Nam Tra Vinh
Viet Trung Environmental Technology Co., Ltd
Viet Tin Counselling Promoting Intertrade Co., Ltd
Shun An Environment Technology
Viet Nhat Plastic Export Import Export Service Co., Ltd
Son Trang Plastic Service and Trading Production Co., Ltd
Api-Dk Co., Ltd Viet Nam)
52 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
Recycler Name Total Installed Capacity
Total Estimated Actual Utilization (74%)
Nhat Nam Packaging Production Co., Ltd
Hiep Phat Plastic Production Co., Ltd
Nam Thien Sang Export Co., Ltd
Ngu Long Trading and Manufacturing Co., Ltd
Seido Import and Export Co., Ltd
Others 234,300
Total (Rounded) 412,400
Estimated informal PP recyclers / pre-processors capacity (2019)
245,200 232,900
Estimated Net PP scrap import (2019) 85,900 85,900
TOTAL 743,500 623,600
Notes:
• Estimated formal PP recycling capacity is based on known formal recycling capacity of 178,100 TPY (based on interviews, from both present and from past GA Circular studies, with 19 recyclers) which was extrapolated to account for an additional 25 recyclers which are believed to recycle this resin but whose capacity could not be reasonably estimated. The extrapolated value thus results in a total estimated formal PP recycling capacity of 412,400 TPY.
• The informal pre-processor capacity for PP is calculated as 25% of the total assumed utilization informal recycler capacity.
• Based on interviews with the recyclers the average utilization rate is estimated to be 74% for PP recycling in 2019. This figure has been used in the calculation of the total estimated actual utilization for formal recyclers while for informal recyclers/pre-processors the average utilization rate is assumed to be 95% (see Appendix 15 below).
• PP scrap export is an estimate and is based on the net of imports and exports. See Appendix 9 for the assumptions related to scrap
plastic imports and exports per resin.
PEEstimated Installed Recycling Capacity and Utilization Recycling Capacity for Formal and Informal/Pre-processors of PE Resin in Vietnam in 2019
Recycler Name Total Installed Capacity
Total Estimated Actual Utilization (69%)
Lam Tran JSC
320,100 349,300
Q.M.T - JP Plastic JSC
Trinh Nghien JSC
Vinatic Hai Phong Co., Ltd
H.A resin - H.A Co., Ltd
HL plastic
Khanh Quynh Long An Ltd.
APPENDIX 8: INFORMATION ON PLASTICS RECYCLERS IN VIETNAM | 53
Recycler Name Total Installed Capacity
Total Estimated Actual Utilization (69%)
Minh Hieu Sai Gon
Nhat Nam Tra Vinh
VietTrung Environmental Technology Co., Ltd
Viet Tin Counselling Promoting Intertrade Co., Ltd
Shun An Environment Technology
Son Trang Plastic Service and Trading Production Co., Ltd
HM plastics production, trade and service Co., Ltd
Tan Phu Production, Trade and Service Co., Ltd
Dai Tin Phat Co., Ltd. (Api-Dk Co., Ltd Viet Nam)
Nhat Nam Packaging Production Co., Ltd
Khanh Toan Co., Ltd
Seido Import and Export Co., Ltd
Others 186,100
Total (Rounded) 506,200
Estimated informal PE recyclers / pre-processors capacity (2019) 343,300 326,100
Estimated Net PE scrap import (2019) 150,200 150,200
TOTAL 999,700 825,600
Notes:
• Estimated formal PE recycling capacity is based on known formal recycling capacity of 320,100 TPY (based on interviews, from both present and from past GA Circular studies, with 19 recyclers) which was extrapolated to account for an additional 13 recyclers which are believed to recycle this resin but whose capacity could not be reasonably estimated. The extrapolated value thus results in a total estimated formal PE recycling capacity of 506,200 TPY.
• The informal pre-processor capacity for PE is calculated as 35% of the total assumed utilization informal recycler capacity.
• Based on interviews with the recyclers the average utilization rate is estimated to be 69% for PE recycling in 2019. This figure has been used in the calculation of the total estimated actual utilization for formal recyclers while for informal recyclers/pre-processors the average utilization rate is assumed to be 95% (see Appendix 15 below).
• PE scrap export is an estimate and is based on the net of imports and exports. See Appendix 9 for the assumptions related to scrap
plastic imports and exports per resin.
54 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
ALL RESINSTotal Estimated Installed Capacity for Formal Recyclers and Informal Recyclers/Pre-processors Vietnam in 2019
Total Installed Capacity (million tonnes)
Formal recyclers (verified) 0.66
Formal recyclers (estimated) 0.51
Informal recyclers/ pre-processors 0.67
Total 1.84
This table is further elaborated on below:
a. Estimated formal and informal recycling capacity of 1.84 million TPY is comprised of:
· 0.66 million TPY is verified formal recycling capacity (160,000 TPY for PET; 320,100 TPY for HDPE and LDPE and 178,100 TPY for PP across a total of 34 recyclers).
· There is an estimated additional 0.51 million TPY of capacity based on 32 other known formal recyclers. These recyclers could not be contacted for this study and details about them are unknown by the VPRA. The estimated additional capacity of 0.51 million for these 32 recyclers is based on extrapolation from the 34 verified recyclers.
· There is an estimated additional 0.67 million tonnes of informal recyclers (both informal recyclers within craft villages and standalone informal recyclers - i.e., outside of craft villages). This estimate has been developed in collaboration with VPRA.
· Please see Appendix 10B, for further details on the formal and informal recycling capacity estimates.
b. The recycling capacity of 1.84 million tonnes is estimated to have been utilized as follows:
· 1.28 million tonnes of this capacity are utilized for locally sourced post-consumer and post-indus-trial plastic (i.e., local CFR). This is based on the mid-range estimates for the CFR rates (i.e. 50% for PET packaging, 35% for Polyolefins and 1% for PET polyester).
· 0.30 million tonnes are estimated to have been utilized for imported plastic scrap. Many recyclers reported that imported plastic scrap is cheaper and better quality than locally sourced plastic scrap and thus many recyclers import, or use imported plastic scrap. Please see Appendix 11 for further information regarding plastic scrap imports.
· 0.26 million tonnes of capacity are estimated to have been inefficiently used due to high levels of contaminants and/or been unutilized due to challenging recycling economics. This is based on interviews with formal recyclers where utilization for 2019 was on average 70-80% for the 4 resins, meanwhile it is estimated that informal recyclers operated at 95% utilization. The estimated utilization is higher for informal recyclers as their operating costs are less and thus, they are more able to operate at optimum levels even when the plastic recycling market is challenged.
With this it can be understood that the CFR rates would be lower than the mid-point estimates if: there was less formal and/or informal recycling capacity then estimated; or there were more scrap imports then reported (as many industry stakeholders consider that reported scrap imports are not the complete figure as land and sea borders throughout Southeast Asia are porous). On the other hand, the CFR rates would be higher than the mid-point estimates if there is more formal and/or informal recycling capacity than estimated.
APPENDIX 8: INFORMATION ON PLASTICS RECYCLERS IN VIETNAM | 55
APP
END
IX 8
D:
CA
LCU
LATI
ON
S FO
R M
ISSI
NG
CA
PAC
ITY
VS
INST
ALL
ED C
APA
CIT
Y FO
R R
ECYC
LIN
G O
F M
AJO
R R
ESIN
S
The
follo
win
g ta
ble
sho
ws
the
calc
ulat
ions
use
d to
der
ive
the
estim
ated
inst
alle
d
cap
acity
and
mis
sing
cap
acity
for e
ach
of t
he k
ey re
sins
. The
recy
clin
g c
apac
ity
figur
es a
re b
ased
on
que
stio
nnai
re re
spo
nses
/ int
ervi
ews
for t
his
stud
y o
r oth
er
stud
ies
by
GA
Circ
ular
, o
r b
ased
on
pub
licly
ava
ilab
le i
nfo
rmat
ion
or
pas
t
conv
ersa
tio
ns, w
hich
co
uld
no
t b
e va
lidat
ed a
s so
me
of t
hese
recy
cler
s ha
ve
not b
een
avai
lab
le fo
r que
stio
nnai
re re
spo
nses
/ in
terv
iew
s fo
r thi
s st
udy.
The
m
issi
ng c
apac
ity
for
each
res
in is
cal
cula
ted
by
sub
trac
ting
the
est
imat
ed fo
rmal
re
cycl
ing
inst
alle
d c
apac
ity
fro
m t
he c
ons
ump
tio
n.
Cal
cula
tion
s U
sed
to D
eriv
e th
e Es
tim
ated
Inst
alle
d C
apac
ity
Vs.
Mis
sing
Cap
acit
y fo
r Rec
yclin
g of
Maj
or R
esin
s in
Vie
tnam
Res
inCo
nsum
ptio
n (T
PY)
Esti
mat
ed
Inst
alle
d Fo
rmal
R
ecyc
ling
Cap
acit
y (T
PY)
Cur
rent
M
issi
ng
Cap
acit
y (T
PY)
Cur
rent
M
issi
ng
Cap
acit
y (T
PY)
Veri
fied
Plan
ned
Add
itio
nal
Form
al
Rec
yclin
g C
apac
ity
(TPY
)
Mis
sing
C
apac
ity
afte
r fa
ctor
ing
plan
ned
Add
itio
nal
Cap
acit
y
Mis
sing
C
apac
ity
afte
r fa
ctor
ing
plan
ned
Add
itio
nal
Cap
acit
y
Esti
mat
ed
Info
rmal
R
ecyc
ling
Cap
acit
y (T
PY)
Mis
sing
C
apac
ity
afte
r als
o fa
ctor
ing
Info
rmal
R
ecyc
lers
Mis
sing
Cap
acit
y af
ter f
acto
ring
Pl
anne
d Fo
rmal
Ex
pans
ions
&
Cur
rent
Info
rmal
R
ecyc
lers
PET
Pack
agin
g38
9,50
024
8,80
014
0,70
036
%93
,200
47,5
0012
%78
,500
00%
PET
Poly
este
r41
0,60
00
410,
600
100%
041
0,60
010
0%0
410,
600
100%
PP1,
427,
800
412,
400
1,01
5,40
071
%36
,200
979,
200
69%
232,
900
746,
300
52%
PE1,
671,
700
506,
200
1,16
5,50
070
%87
,500
1,07
8,00
064
%32
6,10
075
1,90
045
%
Tota
l3,
899,
600
1,16
7,40
02,
732,
200
70%
216,
900
2,51
5,30
065
%63
7,50
01,
908,
800
49%
APP
END
IX 8
E:
AD
DIT
ION
AL
PLA
NN
ED R
ECYC
LIN
G C
APA
CIT
Y
Ad
diti
onal
pla
nned
recy
clin
g c
apac
ity (f
rom
202
0 on
war
ds)
incl
udes
the
follo
win
g
recy
cler
s fo
r ea
ch re
sin:
• PE
T: D
uy T
an P
last
ic, H
L Pl
asti
c, K
hanh
Quy
nh L
ong
An
and
Lar
veg
ne.
• PP
: Lar
vegn
e, D
ai T
in P
hat,
Shei
do, N
hat N
am T
ra V
inh,
Vie
t Nha
t and
Trin
h N
ghie
n.
• PE
: Duy
Tan
Pla
stic
, Vin
atic
, Trin
h N
ghi
en, D
ai T
in P
hat,
She
ido
, Nha
t Nam
Tr
a V
inh,
Kha
nh Q
uynh
Lo
ng A
n an
d V
iet
Nha
t.
56 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 9:
ASSUMPTIONS RELATED TO NET SCRAP PLASTIC IMPORTS
The table below shows the breakdown of net plastic scrap imports to Vietnam.
Net Import of Plastic Scrap into Vietnam Per Resin Type
Imports (Tonnes) 484,280
Exports (Tonnes) 55,019
Net Imports (Tonnes) 429,261
Estimated PET, PP, PE composition 70%
PET scrap (%) 15%
PP scrap (%) 20%
PE scrap (%) 35%
PET scrap (Tonnes) 64,389
PP scrap (Tonnes) 85,852
PE scrap (Tonnes) 150,241
Notes:
• Import data is as reported by VPA while export data is as according to UN Comtrade and verified by VPA and VPRA.
• Estimated PET, PP and PE composition is 70% as there are minimal recyclers who recycle other material. Most recyclers in Vietnam recycle PE, PP and PET. For comparison, for virgin imports,
these three resins account for about 65%.
APPENDIX 9: ASSUMPTIONS RELATED TO NET SCRAP PLASTIC IMPORTS | 57
Photo: Karol Ciesluk - shutterstock
58 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 10:
COMPARISON OF VIRGIN AND RECYCLED RESINS AND OIL PRICES
15 Industry data
16 Private sector stakeholders for SEA prices of virgin PET resin and Recyclers for Recycled Resin prices
The following charts show the EU price comparison of virgin and recycled resins. Please note that EU prices for virgin plastics and recycled plastics have been used as a proxy for global prices because the EU has the greatest price transparency/data availability for virgin prices and recycled prices.
PETEU Price Comparison of Virgin PET and Recycled PET. 15
Comparison of Virgin PET and Recycled PET Prices in Vietnam and Global Oil Prices.16
APPENDIX 10:COMPARISON OF VIRGIN AND RECYCLED RESINS AND OIL PRICES | 59
PP
17 Industry data
18 Private sector stakeholders for SEA prices of virgin PP resin and Recyclers for Recycled Resin prices
EU Price Comparison of Virgin PP and Recycled PP. 17
Comparison of Virgin PP and Recycled PP Prices in Vietnam and Global Oil Prices. 18
60 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
HDPE
19 Industry data20 Private sector stakeholders for SEA prices of virgin HDPE resin and Recyclers for Recycled Resin prices
21 Industry data
EU Price Comparison of Virgin HDPE and Recycled HDPE. 19
Comparison of Virgin HDPE and Recycled HDPE Prices in Vietnam and global oil prices. 20
LDPE
EU Price Comparison of Virgin LDPE and Recycled LDPE. 21
APPENDIX 10:COMPARISON OF VIRGIN AND RECYCLED RESINS AND OIL PRICES | 61
22 Private sector stakeholders for SEA prices of virgin LDPE resin and Recyclers for Recycled Resin prices
Comparison of Virgin LDPE and Recycled LDPE Prices in Vietnam and Global Oil Prices. 22
The following table shows the comparison of virgin prices in Vietnam (please see notes below the table) for both the years 2019 and 2020. The price drops are a direct result of COVID-19 impacts.
Price of Virgin Resins in Vietnam in 2019 And 2020 and the Year-on-year Difference
VIETNAM VIRGIN PRICE COMPARISON YoY
2019 (USD/Ton) 2020 (USD/ton) % Price reduction (YoY)
PET $1,099 $835 24%
HDPE $1,019 $921 10%
LDPE $991 $827 17%
PP $1,077 $921 14%
AVERAGE $1,047 $876 16%
Notes:
• Virgin resin price data for 2019 is an average of the prices reported for all 12 months of the year. Data sources:
ö PET: Vietnam Plastics Association
ö HDPE, LDPE, and PP: private sector stakeholders
• PET virgin resin price data for 2020 is an average for all 12 months in 2020 as according to VPA. HDPE, LDPE, and PP virgin resin price data for 2020 is an average of the months from January to August as according to private sector stakeholders in Vietnam. The
private sector stakeholder data is reported as the price for the Southeast Asia region.
62 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 11:
MANDATING RECYCLED CONTENT TAR-GETS & VIETNAM’S ABILITY TO FULFIL THESE TARGETS
23 Digital Europe: Best Practices in Recycled Plastics (2016)
24 The Coca-Cola Company, “Coca-Cola and PRO Vietnam partner with the Ministry of Natural Resources and Environment “For a Green, Clean and Beautiful Vietnam”” (2019)
11.1 CHALLENGES THAT NEED TO BE OVERCOME FOR RECYCLED CONTENT TARGETS TO BE EFFECTIVE
It must be noted that while switching to using recycled content that substitutes and hence reduces the need for virgin plastics may be technically feasible for specific applications, specific challenges need to be overcome. These challenges are as outlined below: 23
• Usage of recycled plastics require sizable investments in upgrading/changing production and packaging lines, expensive re-testing to ensure compliance with safety regulations and quality/durability requirements.
• At least for the initial few years, until demand picks up further, recycled plastics are likely to come from several different suppliers, which are smaller in size than typical suppliers of virgin plastics. Hence, they are less able to meet fluctuations in demand volume as they cannot control the rate of source materials arising without holding expensive feedstock or finished material buffer volumes.
• Consumer acceptance of recycled plastics must be addressed. Cosmetic blemishes from recycled content may not affect technical performance of a product but can still influence aesthetic factors. Thus, it is difficult to expect the wide use of recycled plastics for the products whose design and look can play a critical role in consumer purchase decisions.
• A well-managed formal source segregation and separate collection infrastructure needs to be established to meet increases in demand which will result from the implementation of mandatory recycled content targets. This is required as the current reliance on the supply from the informal sector does not always have the required quality of post-consumer material to address the demand that will result from an industry-wide recycled content target.
11.2 RECYCLED CONTENT VOLUMES TO MEET RECYCLED CONTENT TARGETS
The table below shows the formal recycling capacity needed based on modelling up to 2030 consistent with (i) National Action Plan for Marine Plastic Management by 2030; and (ii) PRO’s Vietnam ambition of 100% of packaging sold by member organizations to be collected by 203024. As indicated, there is sufficient overall formal recycling capacity within Vietnam in 2019 to achieve 20% recycled content targets even for the estimated 2030 plastic consumption amount.
Recycled Content Volumes (Tonnes Per Year) Which Would be Required Based on Recycled Content Targets of 20% and 30%
Resin2030 Estimated Plastic Consumption (TPY)
Recycled Content Volumes (TPY) Based on 2030 Recycled Content Targets
Estimated 2019 Local Formal Recycling Capacity (TPY)20% 30%
PET Packaging 511,015 102,203 153,304 248,800
PET Polyester 538,713 107,743 161,614 NA
PP 1,873,373 374,675 562,012 412,400
HDPE 978,001 195,600 293,400506,200
LDPE/LLDPE 1,215,360 243,072 364,608
Total 5,116,462 1,023,292 1,534,939 1,167,400
Note: 2030 estimated consumption is based on 2.5% Compound Annual Growth Rate (CAGR).
APPENDIX 11: MANDATING RECYCLED CONTENT TARGETS & VIETNAM’S ABILITY TO FULFIL THESE TARGETS | 63
Photo: Matyas Rehak - shutterstock
64 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 12:
VPBANK GREEN LOAN
25 Vietnam Investment Review, “VP Bank receives $212.5 million loan from IFC for green projects” (2020)
12.1 VPBANK GREEN LOAN FRAMEWORK LAUNCHED IN AUGUST 2020
The VP Bank Green Loan Framework launched in August 2020 has a strategic objective of increasing financing for climate-smart initiatives to boost environmen-tally sustainable development in Vietnam with a high potential of greenhouse gas emissions reduction. It is expected that about one-third of the USD 212.5 million package will be earmarked for climate-friendly projects, creating new options for businesses to obtain green financing.25
Under the agreement, VP Bank will also receive technical support from IFC experts in building a green credit policy framework and sustainable financial instruments, as well as monitoring, managing, and reporting on the status of capital used for green projects, which will be certified by a reputable international organization. To meet the stringent requirements of the loan, VP Bank has invested in training a group of green credit experts with international certificates to evaluate the green standards in each project. The eligible Green Asset categories in the VP Bank Green Loan Framework are:
1. Renewable Energy
2. Energy Efficiency
3. Clean Transport
4. Eco-friendly and/ or circular economy adapted products, production, technologies
5. Water Efficiency or wastewater
6. Sustainable construction
7. Agriculture and Forestry
8. Prevention and Pollution Control
APPENDIX 12: VPBANK GREEN LOAN | 65
12.2 DOCUMENTS REQUIRED BY VPBANK FOR FUNDING APPLICATIONS
26 VP Bank
List of Documents Required by VP Bank for Funding Applications 26
# Document criteria Name of documents
1 Environmental impact assessment
License approval / Certification for 1 of the following types of forms:
Environmental impact assessment
Detailed proposal of environmental protection
Registration form to meet environmental standards
Environmental protection commitments
Environmental protection plan
Simplified proposal of environmental protection
2 Community consultation
Minutes of a consultation meeting with the community directly affected by the project
3 Discharge permits Permission to discharge wastewater into water sources
4 Environmental protection facilities
Certificate of completion of environmental protection facilities
5Hazardous substances management
Registration form for source of hazardous waste
6 Import of scrapCertificate of eligibility for environmental protection for the import of scrap for use as raw production materials
Written confirmation of deposit guarantee for imported scrap
7 Chemical safety
License approval / Document certification for 01 of the following report types:
Chemical incident prevention and response plan
Chemical incident prevention and response measures
8 Radioactive safetyDecision approving the Radiation and Particle Incident Response Plan in the primary level
9 Fire prevention and fighting
Fire protection design approval documents
Document for acceptance test of fire protection system
A certificate of compulsory fire and explosion insurance
10Environmental Management System
Confirmation of environmental management system
11 Waste treatmentCommon waste collection / transportation / treatment permit
Hazardous waste collection / transportation / treatment permit
66 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
# Document criteria Name of documents
12Liability insurance for environmental damages
Written confirmation of purchase of environmental damage liability insurance
Documents confirming or setting up environmental risk reserve fund
13 Environmental monitoring
Wastewater discharge report to water sources
Periodic monitoring reports on wastewater and / or emissions
14 Occupational safety
Occupational safety and hygiene plan
15Observe the working environment
Reporting the results of working environment monitoring
12.3 VP BANK GREEN LOAN APPROVED APPLICANTS AND THE RESPECTIVE FUNDING APPLICATION
27 VP Bank
Approved Applicants and the Respective Funding Allocation Amount 27
Industry Approved Applicants Fund Allocation
Renewable Energy
Solar power 78.4% 46.8%
Saturated steam from clean fuel 1.5% 1.9%
Producing wood pellets 10.8% 23.6%
Recycling/ Circular Economy
Steel recycling 1.5% 0.7%
Processing seafood waste 6.3% 24.7%
Energy efficiency Electric vehicle production 1.5% 2.3%
Total 100% 100%
APPENDIX 12: VPBANK GREEN LOAN | 67
Photo: Vietnam Stock Images - shutterstock
68 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 13:
THE ENABLING POLICY ENVIRONMENT FOR CIRCULARITY AND INTERVENTIONS
28 Life Cycle Thinking and Assessment for Waste Management
Creating an enabling policy environment for circularity of plastics through a range of policy instruments plays a defining role in the success towards achieving circularity. In this section, the study will analyze the existing national-level regulations, roadmaps and timelines and identify any gaps that are limiting the scale-up of the domestic plastic recycling industry and compare these against a benchmark of best practices from other jurisdictions.
13.1 LIFE CYCLE APPROACH TO PLASTICS CIRCULARITY POLICIES
Assessment of the enabling policy environment for plastics circularity in Vietnam can be approached using a life cycle approach for each of the major end-use industries consuming plastics. Over their lifetime, plastic products can contribute to various environmental impacts. Taking a life cycle approach considers the range of impacts throughout the life of a product and quantifies this by assessing the emissions, resources consumed and pressures on health and the environment that can be attributed to a product. It takes the entire life cycle into account – from the extraction of natural resources through to material processing, manufacturing, distribution and use; and finally, the re-use, recycling, energy recovery and the disposal of remaining waste.28 Thus a life cycle approach provides a holistic framework for assessment of policies and their impacts.
For example, taking a life cycle approach can quantitatively address a frequent issue in plastic waste management: whether to recycle or incinerate used plastic products such as plastic bottles. The production of plastic bottles from raw materials requires about 80 MJ/kg (energy per kilogram). Incineration can generate about 3 MJ/kg of electricity and about 10 MJ of process steam from the recovered energy. However, despite this small energy gain, new bottles would have to be produced, requiring high amounts of energy. In contrast, recycling and selective collection consumes 9 MJ/kg while also avoiding the much higher energy consumption used in the production of new plastic from raw materials. Recycling therefore normally results in lower energy consumption than incinerating bottles and producing new ones from raw material.
This example assumes, however, that the plastic is not heavily soiled and is not degraded in the recycling process. If the plastic recycling process produces plastic products of lower value end use applications or under different conditions, then it could result in different conclusions.
For each industry, policies impacting plastics circularity can be divided into the following life cycle stages:
• General Legislative Framework - The overarching legislation which guides policies for the industry.
APPENDIX 13: THE ENABLING POLICY ENVIRONMENT FOR CIRCULARITY AND INTERVENTIONS | 69
• Production - Policies which affect the ways and rules under which plastic products are manufactured.
• Consumption - Policies which affect consumption/consumer behavior.
• Disposal - Policies which relate to what occurs when a product is sent to a landfill, incinerator, or is leaked into the environment.
• Recycling - Policies which affect the recovery of plastics after consumption and the actual recycling process.
The above five life cycle changes have been used to classify and thus analyze different legislations/initiatives pertaining to the different end-use industries.
13.2 PACKAGING: ENABLING POLICY ENVIRONMENT
PACKAGING: POLICY EXAMPLES ACROSS LIFE CYCLE
Examples of Relevant Policies and Interventions for Plastics Circularity with Regards to Packaging
LIFE CYCLE STAGES
General Policy Framework
Production Consumption Disposal Recycling
Policies MSW Legislation
National Targets
Export Import Trade Policy
Design Standards
Recycled Content Policy
Alternative Materials
Packaging Taxes
Source Reduction Policies (e.g., plastic bag bans)
Green procurement
Landfill bans
Diversion from landfill targets
Anti-Litter legislation
Source segregation / deposit refund schemes
Food-grade standards
Extended Producer Responsibility
Across the five industries analyzed in this report, packaging has by far the most developed policies due to its heavy use of plastics and the attention that the leakage of plastics has garnered over the last 5 years. Hence, as described in the table above, the best policies that deal with plastic packaging are
those which engage stakeholders across the value chain, plug leakages along the product life cycle and have clear targets which enables each stakeholder to understand what is required of them and hence enables effective implementation.
70 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
PAC
KA
GIN
G: C
UR
REN
T PO
LIC
IES
AC
RO
SS L
IFE
CYC
LE
29
Dat
Ng
uyen
, “V
ietn
am to
end
pla
stic
scr
ap im
po
rts
fro
m 2
025”
(201
9)
30
Bev
erid
ge
& D
iam
ond
, “C
hina
pro
mul
gat
es A
men
dm
ent t
o it
s So
lid W
aste
Law
” (2
020)
31
W
e Li
and
Wen
ting
Lin
, “C
hap
ter 7
Circ
ular
Eco
nom
y Po
licie
s in
Chi
na”
(201
6)
Cur
rent
Pol
icie
s A
cros
s Pa
ckag
ing
Life
Cyc
le
Life
Cyc
le
Stag
esV
ietn
amB
ench
mar
ks fr
om o
ther
juri
sdic
tion
s
Chi
naSi
ngap
ore
Indi
aEu
rope
an U
nion
Japa
n
Gen
eral
Le
gis
lati
ve
Fram
ewo
rk
No
sp
ecifi
c p
last
ic
pac
kag
ing
leg
isla
tio
n ho
wev
er t
he N
atio
nal
Act
ion
Plan
for
Man
agem
ent
of M
arin
e Pl
asti
c Li
tter
by
2030
(o
f whi
ch m
ajo
rity
of
pla
stic
litt
er is
sin
gle
-use
p
acka
gin
g it
ems)
co
ntri
but
es t
o t
he t
arg
ets
of t
he N
atio
nal S
trat
egy
for
Gen
eral
Man
agem
ent
of S
olid
Was
te b
y 20
25
wit
h vi
sio
n to
war
ds
2050
.
Ban
on
the
imp
ort
of
scra
p p
last
ic w
aste
fro
m
2025
.29
The
5th
Am
end
men
t (in
202
0) t
o t
he
Solid
Was
te
Env
ironm
enta
l Po
lluti
on
Prev
enti
on
and
Co
ntro
l Law
(“
Solid
Was
te L
aw”)
fo
cuse
s o
n th
e so
lid
was
te h
and
ling
p
rinc
iple
s o
f re
duc
tio
n, re
cycl
ing
, an
d h
arm
less
ness
.30
Pack
agin
g w
aste
is
als
o o
ne o
f th
e m
ain
field
s co
vere
d u
nder
the
p
ilot
list
of C
hina
’s C
ircul
ar E
cono
my
Dev
elo
pm
ent
Stra
teg
ies
and
A
ctio
n Pl
an
laun
ched
in 2
013.
31
The
Res
our
ce
Sust
aina
bili
ty A
ct
out
lines
thr
ee
focu
s w
aste
st
ream
s (in
clud
ing
p
acka
gin
g)
and
str
ateg
ies
to in
crea
se
colle
ctio
n fo
r re
cycl
ing
rat
es fo
r th
ese
stre
ams.
Plas
tic
Was
te
Man
agem
ent
(PW
M
Rul
es),
2016
. Co
llect
ion
targ
ets
exis
t an
d
min
imum
req
uire
men
ts
for
EPR
sch
emes
do
no
t ex
ist
in t
hese
rul
es.
The
Pack
agin
g a
nd
Pack
agin
g W
aste
D
irect
ive
sets
tar
get
s fo
r th
e re
cove
ry o
f p
acka
gin
g w
aste
and
co
vers
str
ateg
ies
to
be
imp
lem
ente
d b
y m
emb
er s
tate
s to
co
llect
pac
kag
ing
w
aste
.
The
Bas
ic A
ct
for
Est
ablis
hing
a
Soun
d
Mat
eria
l-C
ycle
So
ciet
y cl
arifi
es
the
resp
ons
ibil-
itie
s o
f all
key
stak
eho
lder
s an
d a
rtic
ulat
es
fund
amen
tal
mat
ters
fo
r m
akin
g
po
licie
s fo
r th
e fo
rmat
ion
of a
So
und
M
ater
ial-
Cyc
le
soci
ety.
APPENDIX 13: THE ENABLING POLICY ENVIRONMENT FOR CIRCULARITY AND INTERVENTIONS | 71
Life
Cyc
le
Stag
esV
ietn
amB
ench
mar
ks fr
om o
ther
juri
sdic
tion
s
Chi
naSi
ngap
ore
Indi
aEu
rope
an U
nion
Japa
n
Pro
duc
tio
nN
o s
pec
ific
reg
ulat
ions
fo
r m
anuf
actu
rers
.Th
e 5t
h A
men
dm
ent
req
uire
s m
and
ato
ry
rep
ort
ing
of
pro
duc
ts a
nd
pac
kag
ing
list
ed in
a
cata
log
(Art
icle
68)
b
y m
anuf
actu
rers
, se
llers
, and
im
po
rter
s.
Pro
duc
ers
are
also
req
uire
d
to re
duc
e th
e p
acka
gin
g v
olu
me
by
limit
ing
exc
essi
ve
pac
kag
ing
.
Req
uire
s m
and
ato
ry
rep
ort
ing
of
pac
kag
ing
use
fo
r p
rod
ucer
s an
d re
taile
rs fr
om
20
22 o
nwar
ds.
Plas
tics
pro
duc
ers
need
to
wo
rk o
ut m
od
alit
ies
for
was
te c
olle
ctio
n sy
stem
s fo
r co
llect
ing
b
ack
the
pla
stic
was
te
wit
hin
a p
erio
d o
f six
m
ont
hs. N
o t
arg
ets
set.
The
"ess
enti
al
req
uire
men
ts o
f p
acka
gin
g"
req
uire
s th
e m
inim
izat
ion
of
pac
kag
ing
vo
lum
e an
d w
eig
ht, d
esig
n o
f p
acka
gin
g fo
r re
use
or
reco
very
and
the
en
cour
agem
ent
of
recy
cled
mat
eria
ls
usag
e in
pac
kag
ing
.
The
EU
Co
mm
issi
on
is a
lso
init
iati
ng w
ork
o
n ne
w h
arm
oni
zed
ru
les
to e
nsur
e th
at
by
2030
all
pla
stic
s p
acka
gin
g p
lace
d o
n th
e E
U m
arke
t ca
n
be
reus
ed o
r re
cycl
ed
in a
co
st-e
ffec
tive
m
anne
r.
Req
uire
s p
aym
ent
of
a re
cycl
ing
fe
e b
y m
anuf
actu
rers
to
the
d
esig
nate
d
org
aniz
atio
n fo
r re
cycl
ing
.M
ahar
asht
ra s
tate
re
qui
res
ind
ustr
ial
pac
kag
ing
pro
duc
ed
to in
clud
e at
leas
t 20
%
recy
cled
mat
eria
l.
72 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
Life
Cyc
le
Stag
esV
ietn
amB
ench
mar
ks fr
om o
ther
juri
sdic
tion
s
Chi
naSi
ngap
ore
Indi
aEu
rope
an U
nion
Japa
n
Con
sum
ptio
nPr
ime
min
iste
r N
guy
en
Xua
n Ph
uc la
unch
ed
a ca
mp
aig
n th
at
has
ple
dg
ed t
o b
an
sing
le-u
se p
last
ic
nati
onw
ide
by
2025
an
d re
mo
ve it
fro
m
sup
erm
arke
ts a
nd o
ther
ur
ban
mar
kets
by
2021
.32
The
Nat
iona
l Str
ateg
y fo
r In
teg
rate
d s
olid
was
te
man
agem
ent
to 2
025,
vi
sio
n to
205
0 ha
s ta
rget
s o
f red
ucin
g p
last
ic b
ag
usag
e in
sup
erm
arke
ts
and
tra
de
cent
ers
by
85%
(fro
m 2
010
leve
ls) b
y 20
25.33
Und
er t
he
Am
end
men
t, c
erta
in
sing
le-u
se p
last
ic
pro
duc
ts a
nd
pac
kag
ing
item
s su
ch a
s no
n-b
io-
deg
rad
able
pla
stic
b
ags
are
pro
hib
ited
an
d re
stri
cted
fr
om
sal
e an
d o
r p
rod
ucti
on
(Art
icle
69
).
No
leg
isla
tio
n fo
r co
nsum
er
beh
avio
r ye
t.
Was
te g
ener
ato
rs
incl
udin
g in
stit
utio
nal
gen
erat
ors
, are
re
qui
red
to
seg
reg
ate
pla
stic
was
te.
The
Sing
le U
se
Plas
tics
dire
ctiv
e b
ans
sele
cted
sin
gle
-use
p
rod
ucts
mad
e o
f p
last
ic fo
r w
hich
al
tern
ativ
es e
xist
by
2021
and
imp
lem
ents
E
PR s
yste
ms
for
oth
ers.
The
Jap
anes
e g
ove
rnm
ent
has
pla
ns t
o
mak
e p
last
ic
sho
pp
ing
b
ag c
harg
es
man
dat
ory
.
32
The
ASE
AN
Po
st T
eam
, “W
ill A
SEA
N b
an s
ing
le-u
se p
last
ic?”
(201
9)
33
ASE
M C
onn
ect,
“Nat
iona
l str
ateg
y fo
r int
egra
ted
so
lid w
aste
man
agem
ent t
o 2
025,
vis
ion
to 2
050”
(201
7)
APPENDIX 13: THE ENABLING POLICY ENVIRONMENT FOR CIRCULARITY AND INTERVENTIONS | 73
Life
Cyc
le
Stag
esV
ietn
amB
ench
mar
ks fr
om o
ther
juri
sdic
tion
s
Chi
naSi
ngap
ore
Indi
aEu
rope
an U
nion
Japa
n
Dis
po
sal
The
Nat
iona
l Str
ateg
y fo
r In
teg
rate
d s
olid
w
aste
man
agem
ent
to
2025
, vis
ion
to 2
050
has
the
view
po
int/
ob
ject
ive
red
ucin
g t
he v
olu
me
of
solid
was
te t
o b
e b
urie
d
via
incr
easi
ng re
use
and
re
cycl
ing
of w
aste
.34
Wit
h o
bje
ctiv
es s
uch
as
trea
ting
90%
of c
olle
cted
d
aily
life
was
te (M
SW) i
n ur
ban
are
as s
uch
that
it is
re
cycl
ed, r
euse
d, e
nerg
y re
cove
red
or
used
as
fert
ilize
r b
y 20
25 h
ence
d
iver
ting
the
am
oun
t o
f w
aste
to
be
bur
ied
.
The
Zero
Was
te
Mas
terp
lan
aim
s to
red
uce
was
te
sent
to
land
fill b
y 30
% b
y 20
30.
Loca
l bo
die
s ar
e re
spo
nsib
le fo
r se
gre
gat
ion,
co
llect
ion,
st
ora
ge,
and
dis
po
sal.
No
tar
get
s se
t.
The
EU
Lan
dfil
l D
irect
ive
aim
s to
p
hase
out
land
fillin
g
for
recy
clab
le m
ater
ial
by
2025
.
Ther
e ar
e no
ta
rget
s fo
r d
iver
sio
n fr
om
la
ndfil
l or
land
fill b
ans
curr
entl
y in
Ja
pan
.Lo
cal b
od
ies
are
req
uire
d t
o e
nco
urag
e us
e o
f pla
stic
was
te
for
road
co
nstr
ucti
on
or
ener
gy
reco
very
o
r w
aste
to
oil
or
co-p
roce
ssin
g in
ce
men
t ki
lns
und
er
Plas
tic
Was
te
Man
agem
ent
Rul
es
2016
.
34
Act
ual v
iew
po
int “
Solid
was
te m
anag
emen
t mus
t be
per
form
ed in
an
inte
gra
ted
man
ner t
o p
reve
nt a
nd re
duc
e ar
isin
g w
aste
at
sour
ce w
hich
is t
he t
op
prio
rity
task
and
to
in
crea
sing
ly re
use
and
recy
cle
was
te to
red
uce
the
volu
me
of w
aste
to b
e b
urie
d.”
(201
7)
74 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
Life
Cyc
le
Stag
esV
ietn
amB
ench
mar
ks fr
om o
ther
juri
sdic
tion
s
Chi
naSi
ngap
ore
Indi
aEu
rope
an U
nion
Japa
n
Rec
yclin
gA
rtic
le 8
2 o
f the
201
4 re
visi
on
to t
he L
aw o
f E
nviro
nmen
tal P
rote
ctio
n (L
EP)
req
uire
s ho
useh
old
s in
urb
an a
nd re
sid
enti
al
area
s to
cla
ssify
was
te a
t so
urce
.35
Cla
ssifi
cati
on
cate
go
ries
sp
ecifi
ed u
nder
the
200
5 LE
P in
clud
e fo
r re
cycl
ing
, d
isp
osa
l, in
cine
rati
on,
an
d b
uria
l.36
As
par
t o
f the
202
0 re
visi
on
of t
he L
EP,
the
D
epar
tmen
t o
f Leg
al
Aff
airs
of M
ON
RE
is
loo
king
to
incl
ude
the
leg
al fr
amew
ork
for
EPR
in t
he L
EP
of w
hich
p
acka
gin
g h
as b
een
iden
tifie
d a
s 1
of t
he 5
p
rod
uct
gro
ups
sub
ject
to
EPR
.37
*Rat
es o
f seg
reg
atio
n o
f was
te a
t so
urce
are
ho
wev
er in
adeq
uate
. A
dd
itio
nally
, the
re is
in
suffi
cien
t in
fras
truc
ture
re
qui
red
to
dea
l wit
h se
gre
gat
ed w
aste
co
llect
ion
and
p
roce
ssin
g.
At
the
end
-of-
life,
th
e A
men
dm
ent
to t
he S
olid
Was
te
Law
req
uire
s m
anuf
actu
rers
, se
llers
and
im
po
rter
s o
f p
rod
ucts
and
p
acka
gin
g p
rese
nt
in t
he m
and
ato
ry
recy
clin
g c
atal
og
to
re
cycl
e th
e p
rod
ucts
as
acc
ord
ing
to
leg
isla
tive
re
qui
rem
ents
.38
A d
epo
sit
refu
nd
syst
em h
as b
een
anno
unce
d t
o
be
imp
lem
ente
d
in 2
022
and
is
cur
rent
ly
und
erg
oin
g
ind
ustr
y co
nsul
tati
ons
.
The
dra
ft 2
019
Nat
iona
l Res
our
ce
Effi
cien
cy P
olic
y se
ts
targ
ets
for
pac
kag
ing
re
cycl
ing
incl
udin
g
100%
recy
clin
g r
ate
for
PET
by
2025
and
75%
re
cycl
ing
and
reus
e ra
te fo
r o
ther
pla
stic
s b
y 20
30.
The
Sing
le-U
se
Plas
tics
Dire
ctiv
e es
tab
lishe
s E
PR
syst
ems,
by
2025
, w
hich
co
vers
the
co
sts
of c
olle
ctio
n,
tran
spo
rt, t
reat
men
t,
clea
n-up
of l
itte
r an
d a
war
enes
s-ra
is-
ing
mea
sure
s fo
r al
l p
acka
gin
g.
The
dire
ctiv
e m
and
ates
: (a)
new
re
cycl
ing
tar
get
for
pla
stic
pac
kag
ing
, se
t at
55%
in 2
030;
(b
)Sp
ecifi
cally
for
pla
stic
PE
T b
ott
les
a 25
% re
cycl
ed c
ont
ent
targ
et b
y 20
25 a
nd
30%
recy
cled
co
nten
t ta
rget
by
2030
; (c)
Co
llect
ion
targ
et o
f 77
% o
f sin
gle
-use
p
last
ic d
rink
bo
ttle
s b
y 20
25 a
nd 9
0% b
y 20
29 t
hro
ugh
EPR
o
r th
roug
h d
epo
sit
refu
nd s
chem
es
Act
on
the
Pro
mo
tio
n o
f Eff
ecti
ve
Uti
lizat
ion
of
Res
our
ces
fost
ers
the
recy
clin
g
of r
eusa
ble
re
sour
ces.
Dec
ree
174/
2007
/N
D-C
P o
n en
viro
nmen
tal
pro
tect
ion
fee
of s
olid
was
teIn
201
9, t
he lo
cal
go
vern
men
t m
and
ated
co
mp
anie
s an
d
ind
ivid
uals
in
Shan
gha
i to
se
gre
gat
e w
aste
in
to t
he fo
llow
ing
4
cate
go
ries
: R
ecyc
lab
le g
oo
ds
(e.g
. bo
ttle
s an
d
cans
), H
arm
ful
was
te (e
.g. b
atte
ries
an
d m
edic
ines
), K
itch
en w
aste
and
O
ther
was
te (e
.g.
bat
hro
om
pro
duc
ts).
35
2014
Law
of E
nviro
nmen
tal P
rote
ctio
n 36
20
05 L
aw o
f Env
ironm
enta
l Pro
tect
ion
37
IUC
N, “
Exte
nded
Pro
duc
er R
esp
ons
ibili
ty: a
n ap
pro
ach
to im
pro
ving
so
lid w
aste
man
agem
ent i
n V
ietn
am”
(202
0)
38
Sphe
ra, “
Revi
sio
n to
Chi
na’s
Solid
Was
te L
aw”
(202
0)
APPENDIX 13: THE ENABLING POLICY ENVIRONMENT FOR CIRCULARITY AND INTERVENTIONS | 75
Legend
Light blue = Best case practices
There are four key lessons to be gained from the above assessment on circularity for the packaging industry:
1. The EU has the best policies for packaging circularity except for the general legislative framework where Japan has the advantage. This reflects the EU’s expertise and experience in the Circular Economy. For example, the “essential requirements of packaging” by the EU establishes rules on packaging design to minimize its impact on the environment and to improve recyclability of packaging. By 2025 at least 55% of all plastics packaging in the EU are required to be recycled. As of 2017, this rate is at 42%. The clear requirements and targets mean that there is less confusion and better enforcement. This also reflects the strong governance that the EU and its member states have that enables them to enforce these rules across all the stakeholders in the EU. Therefore, should the Vietnam government want to set its ambitions high, it should look to the targets of the EU as a reference point.
2. Japan has a better general legislative framework than the EU as the Basic Act for Establishing a Sound Material-Cycle Society is an enforceable law with details on how stakeholders should act to increase collection of recyclables. On the other hand, while the Packaging and Packaging Waste Directive of the EU is mandatory (i.e., the targets and actions listed within it must be complied by
member states), the directive must be interpreted by member states and then laws in each member state must be enacted to comply with the directive. It is not, by itself, a legislation hence is not applicable to the Vietnamese context. Hence, Japan’s Basic Act for Establishing a Sound Material-Cycle Society can be used as a solid reference point to draft an overarching Circular Economy legislation for Vietnam.
3. Vietnam can draw on the example of Singapore’s mandatory reporting requirement of packaging use for producers and retailers to incorporate in the legal framework of an EPR system that is currently being drafted by the Department of Legal Affairs of MONRE. This mandatory reporting by Singapore, which will begin from 2022 onwards, is a fact-based mechanism to arrive at relevant Extended Producer Responsibility measures and to track progress on plastics packaging circularity targets.
4. While Vietnam has some policies, which are positive in terms of encouraging circularity (e.g., bans on plastic bags and other single use plastic items as well as on plastic scrap imports), they have yet to be in full effect (e.g., the nationwide single-use plastic elimination target is set for 2025) and hence it is difficult to determine the enforcement and compliance of such plastic bans. To enhance compliance, these bans should be backed up with supporting legislation such that they are enforceable and that offenders would be required to pay a steep fine should they not comply with the ban.
Photo: LELACHANOK - shutterstock
76 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
13.3 ELECTRONICS: ENABLING POLICY ENVIRONMENTELECTRONICS: POLICY EXAMPLES ACROSS LIFE CYCLE
Examples of Relevant Policies and Interventions for Plastics Circularity with Regards to Plastics in Electronics
LIFE CYCLE STAGES
General Policy Framework
Production Consumption Disposal Recycling
Policies MSW Legislation
National Targets
Export Import Trade Policy
Design Standards
Source Reduction Policies
Right to Repair
Green procurement
Landfill bans
Diversion from landfill targets
Source segregation
Take-back obligations
Extended Producer Responsibility
As plastics are built into electronics, this section will discuss policies related to the recovery of electronic waste and the plastics within it interchangeably. For electronics, a key policy is to ensure that the electronics are easily disassembled so that its component parts can be separated to be fed into their specific recycling processes. While e-waste has a generally high value in the informal recycling market, its high value is derived from its electrical components (e.g., copper wiring,
circuit boards). Plastic components of e-waste are not as well recovered as the electrical components as they are either too low value compared to the electronic components or are designed such that it is too difficult to separate from other components to be worth recycling. Hence, formal collection systems with clear recovery targets for all materials need to be implemented to ensure that all parts of an electronic waste are recovered.
ELECTRONICS: CURRENT POLICIES ACROSS LIFE CYCLE
39 Hong Thi Thu Nguyen et al. “Determinants of Resident’s E-Waste Recycling Behaviour Intention: A Case Study from Vietnam” (2018) 40 We Li and Wenting Lin, “Chapter 7 Circular Economy Policies in China” (2016)
Current Policies Across Electronics Life Cycle
LIFE CYCLE STAGES Vietnam
Benchmarks from other jurisdictions
China Singapore European Union
Japan
General Legislative Framework
There is no E-waste specific legislation in Vietnam. E-waste is however one of the products considered under Decision No. 16/2015/QD-TTg for the recall and treatment of products. 39
E-waste is regulated under the Collection and Treatment Decree of Waste Electric and Electronic Equipment (WEEE) and as part of the 5th Amendment to the Solid Waste Law.
Electronic waste is also one of the main fields covered under the pilot list of China’s Circular Economy Development Strategies and Action Plan launched in 2013.40
The Resource Sustainability Act deals with e-waste as one of its three priority waste streams
A “Circular Electronics Initiative” will be released which will act as the regulatory framework for electronic waste
The Home Appliance Recycling Law divides the respon-sibilities of stakeholders (e.g., manufacturers, consumers) for the recycling of electronic waste
APPENDIX 13: THE ENABLING POLICY ENVIRONMENT FOR CIRCULARITY AND INTERVENTIONS | 77
LIFE CYCLE STAGES Vietnam
Benchmarks from other jurisdictions
China Singapore European Union
Japan
Production No legislation currently exists which affects production of electronics.
Proclamation on strengthening the environmental management of waste electronics and electrical equipment introduced in 2003 encourages electronic product manufacturers to promote cleaner production and eco-designs.41
No legislation currently exists which affects production of electronics.
The Eco-design Directive, as part of the Circular Electronics Initiative, will ensure devices are built for energy efficiency and durability, reparability, upgradability, maintenance, reuse, and recycling
Under the Home Appliance Recycling Law, manufacturers are required to take back home appliances, which they have manufactured or imported from retailers and recycle them.
Consumption Used electronics is prohibited for importation under Decision No. 69/2018/ND-CP.42
Decision No. 16/2015/QD-TTg requires end product users including household families and individuals to return e-waste products to the points of recall organized by the retailer or manufacturer.43
No legislation currently exists which affects consumption behaviors.
No legislation currently exists which affects consumption behaviors.
The Right to Repair is included as part of the Eco-design initiative.
Consumers are obliged to dispose of electronics appropriately and pay for the costs for collection and recycling.
41 Chenyu Lu et. al. , “An overview of e-waste management in China” (2014) 42 Vietnam Environmental Administration, “E-waste Management in Vietnam” (2020) 43 Le Minh Trung, “Decision No. 16/2015/QD-TTg dated May 25, 2015 of the Prime Minister on regulations on recall and treatment of
discarded products” (2015)
78 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
LIFE CYCLE STAGES Vietnam
Benchmarks from other jurisdictions
China Singapore European Union
Japan
Disposal Circular No.34/2017/TT-BTNMT pursuant to the decision mentioned above requires discarded e-waste, after being recalled, to be disposed of pursuant to relevant waste management law/practices.
The decision also requires reporting of discarded products annually to the Vietnam Environment Administration (VEA).
Effective in 2008 the Administrative measures for the prevention and control of environmental pollution by electronic waste. It requires an environmental impact assessment (EIA) to be undertaken for e-waste dismantling, utilization, and disposal projects.44
No legislation currently exists which affects disposal of e-waste to the incinerator.
No legislation currently exists which affects disposal of e-waste to the landfill or incinerator.
No legislation currently exists which affects disposal of e-waste to the landfill or incinerator.
Recycling Under Circular No. 34/2017/TT-BTNMT, the amount of discarded e-waste that is recovered must be reported to VEA annually.
Additionally, as part of the 2020 revision of the LEP, the Department of Legal Affairs of MONRE is looking to include the legal framework for EPR in the LEP of which electric and electronic devices have been identified as 1 of the 5 product groups subject to EPR.
The 5th Amendment requires establishment of an EPR program for electronic and electrical products whereby producers are required to establish and implement a system for recycling.45
The Resource Sustainability Act will in the future establish a Producer Responsibility Scheme (PRS) where producers of electronic products must finance the PRS for e-waste collection.
The WEEE Directive 2012/19/EU Directive provided for the creation of collection schemes where consumers return their WEEE free of charge.
Retailers are to provide take back services for appliances from households and business and deliver them to manufacturers.
44 Lin Wei et. al., “Present Status of e-waste disposal and recycling in China”. (2012) 45 Beveridge & Diamond , “China promulgates Amendments to its Solid Waste law” (2020),
APPENDIX 13: THE ENABLING POLICY ENVIRONMENT FOR CIRCULARITY AND INTERVENTIONS | 79
Legend
Light blue = Best case practices
There are two key lessons to be gained from the above assessment on circularity for the electronics industry:
1. Japan is the clear best-case practice for an enabling policy environment for circularity in electronics across all stages of the life cycle. The Home Appliance Recycling Law is a comprehensive legislation which assigns responsibilities for each stakeholder across the product life cycle. In essence, it compels stakeholders such as retailers and manufacturers to provide for collection infrastructure such as drop-off sites and take-back services. For stakeholders who do not have the
ability to provide collection systems, such as households, recycling fees are mandated to be paid to help fund the collection system. Hence, circular electronic policy formulation in Vietnam should draw on this example from Japan.
2. Although Circular No. 34/2017/TT-BTNMT pursuant to Decision No. 16/2015/QD-TTg requires the recall and treatment of discarded electronic devices (e-waste), they are however no targets pertaining to collection hence it is difficult to determine the effectiveness of manufacturers in retrieving the products for recycling and or proper disposal. Vietnam should establish collection and recycling targets in relation to the recall/retrieval of the discarded e-waste products.
13.4 AUTOMOTIVE: ENABLING POLICY ENVIRONMENT
AUTOMOTIVE: POLICY EXAMPLES ACROSS LIFE CYCLEExamples of Relevant Policies and Interventions for Plastics Circularity with Regards to the Automotive Industry
LIFE CYCLE STAGES
General Policy Framework
Production Consumption Disposal Recycling
Policies MSW Legislation
National Targets
Export Import Trade Policy
Design Standards
Alternative Materials
Source Reduction Policies
There are no specific policies for the automotive industry
Source segregation
Take-back obligations
Extended Producer Responsibility
Since automobiles are typically scrapped at the end of their life (i.e., not just disposed of as is to the landfill), disposal policies are not relevant in the discussion of circularity of plastics in automobiles. Like
electronics recycling and other plastics in non-packaging applications, the ability to separate the plastic portion from the other materials is key to ensuring that the plastics are recycled in practice.
80 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
AU
TOM
OTI
VE:
CU
RR
ENT
POLI
CIE
S A
CR
OSS
LIF
E C
YCLE
46
ASE
M C
onn
ect,
“Dec
ree
No
.116
/201
7/N
D-C
P d
ated
Oct
ob
er 1
7, 2
017
of t
he G
ove
rnm
ent o
n re
qui
rem
ents
for m
anuf
actu
r-in
g, a
ssem
bly
and
imp
ort
of a
uto
mo
bile
s an
d tr
ade
in a
uto
mo
bile
war
rant
y an
d m
aint
enan
ce s
ervi
ces”
(201
7)
47
Co
ngre
ssio
nal E
xecu
tive
Co
mm
issi
on
on
Chi
na, “
Circ
ular
Eco
nom
y Pr
om
otio
n La
w o
f the
Peo
ple
’s Re
pub
lic o
f Chi
na”
(nil)
Cur
rent
Pol
icie
s A
cros
s A
utom
otiv
e Li
fe C
ycle
LIFE
CYC
LE S
TAG
ESV
ietn
am
Ben
chm
arks
from
oth
er ju
risd
icti
ons
Chi
naSi
ngap
ore
Euro
pean
Uni
onJa
pan
Gen
eral
Leg
isla
tive
Fr
amew
ork
The
gen
eral
reg
ulat
ion
is D
ecre
e N
o. 1
16/2
017/
ND
-CP
whi
ch p
rovi
des
th
e re
qui
rem
ents
for
man
ufac
turi
ng, a
ssem
bly
an
d im
po
rt o
f aut
om
ob
iles,
tr
ade
in a
uto
mo
bile
w
arra
nty
and
mai
nten
ance
se
rvic
es.46
The
lifec
ycle
of
auto
mo
bile
s in
Chi
na
are
go
vern
ed b
y Th
e R
egul
atio
ns o
n M
and
ato
ry S
tand
ard
o
f Scr
app
ing
Veh
icle
s an
d t
he M
anag
emen
t M
easu
res
for
Take
-bac
k o
f End
-of-
Life
Veh
icle
s.
The
gen
eral
re
gul
atio
n re
gar
din
g
auto
mo
bile
s in
Si
ngap
ore
is t
he
Ro
ad T
raffi
c (M
oto
r Ve
hicl
es, Q
uota
Sy
stem
) Rul
es.
The
End
-of L
ife V
ehic
les
(ELV
) Dire
ctiv
e 20
00/5
3/E
C p
rovi
des
the
re
gul
ato
ry fr
amew
ork
w
here
ELV
s ar
e g
ove
rned
. It
est
ablis
hes
des
ign
stan
dar
ds,
co
llect
ion
syst
ems
and
resp
ons
ibili
-ti
es a
nd re
cycl
ing
tar
get
s.
The
Aut
om
ob
ile
Rec
yclin
g L
aw
sets
out
role
s an
d re
spo
nsib
ili-
ties
for
each
key
st
akeh
old
er in
the
re
cycl
ing
of E
LV.
Pro
duc
tio
nN
o le
gis
lati
on
curr
entl
y ex
ists
whi
ch a
ffec
ts
circ
ular
ity
at t
he p
rod
ucti
on
stag
e o
f aut
om
ob
iles
Art
icle
40
of t
he
Circ
ular
Eco
nom
y Pr
om
oti
on
Law
en
tails
tha
t th
e st
ate
sup
po
rts
ente
rpri
ses
to
rep
rod
uce
com
po
nent
s an
d p
arts
of m
oto
r ve
hicl
es, m
echa
nica
l p
rod
ucts
and
mac
hine
to
ols
and
reno
vate
ti
res.
47
No
leg
isla
tio
n cu
rren
tly
exis
ts w
hich
af
fect
s ci
rcul
arit
y at
th
e p
rod
ucti
on
stag
e o
f aut
om
ob
iles
As
par
t o
f the
End
-Of-
Life
D
irect
ive,
aut
om
ob
iles
sho
uld
be
des
igne
d
to fa
cilit
ate
pro
per
d
ism
antl
ing
and
to
al
low
co
mp
one
nts
and
mat
eria
ls t
o b
e re
used
, rec
ycle
d a
nd/o
r re
cove
red
The
2000
Law
fo
r Pr
om
oti
ng
the
Eff
ecti
ve U
se
of R
eso
urce
s en
cour
aged
au
tom
aker
s to
in
corp
ora
te m
ore
re
cycl
able
mat
eria
ls
in t
he p
rod
ucti
on
of a
n au
tom
oti
ve.
APPENDIX 13: THE ENABLING POLICY ENVIRONMENT FOR CIRCULARITY AND INTERVENTIONS | 81
LIFE
CYC
LE S
TAG
ESV
ietn
am
Ben
chm
arks
from
oth
er ju
risd
icti
ons
Chi
naSi
ngap
ore
Euro
pean
Uni
onJa
pan
Co
nsum
pti
on
Dec
ree
116
put
s fo
rth
stri
ngen
t re
qui
rem
ents
for
auto
mo
bile
imp
ort
ers.
Dec
isio
n N
o. 1
6/20
15/
QD
-TTg
req
uire
s en
d
pro
duc
t us
ers
incl
udin
g
hous
eho
ld fa
mili
es a
nd
ind
ivid
uals
to
retu
rn
dis
card
ed v
ehic
les
to
the
po
ints
of r
ecal
l o
rgan
ized
by
the
reta
iler
or
man
ufac
ture
r.48 T
here
ar
e ho
wev
er n
o c
olle
ctio
n ta
rget
s.
The
Reg
ulat
ions
on
Man
dat
ory
Sta
ndar
d
of S
crap
pin
g V
ehic
les
req
uire
s co
nsum
ers
to s
crap
the
ir p
riva
te
cars
at
the
end
of t
heir
usef
ul li
fe (b
ased
on
mile
age
wit
h a
limit
of
600,
000k
m).49
Ro
ad T
raffi
c (M
oto
r Ve
hicl
es, Q
uota
Sy
stem
) Rul
es,
imp
lem
ents
the
C
OE
sys
tem
whi
ch
limit
s th
e nu
mb
er
of a
uto
mo
bile
s p
urch
ased
in a
yea
r.
No
leg
isla
tio
n cu
rren
tly
exis
ts w
hich
aff
ects
co
nsum
pti
on
beh
avio
rs.
Vehi
cle
ow
ners
ar
e re
qui
red
to
p
ay a
‘Rec
yclin
g
Fee’
ann
ually
w
hich
hel
ps
fund
co
llect
ion
and
re
cycl
ing
of E
LV.
Rec
yclin
gU
nder
Circ
ular
No
. 34/
2017
/TT
-BTN
MT,
the
qua
ntit
y o
f d
isca
rded
veh
icle
s th
at a
re
reco
vere
d m
ust
be
rep
ort
ed
to V
EA
ann
ually
. The
re a
re
how
ever
no
tar
get
s fo
r m
ater
ial r
eco
vere
d.
Bat
teri
es, a
ccum
ulat
ors
, and
ti
res
(pre
sent
in v
ehic
les)
ar
e p
art
of t
he 2
020
revi
sio
n o
f the
LE
P fo
r th
e le
gal
fr
amew
ork
of p
rod
ucts
su
bje
ct t
o E
PR.
The
5th
Am
end
men
t re
qui
res
esta
blis
hmen
t o
f an
Ext
end
ed
Pro
duc
er R
esp
ons
ibili
ty
pro
gra
m n
ot
onl
y fo
r E
-was
te b
ut a
lso
for
po
wer
bat
teri
es o
f ve
hicl
es.50
Pro
duc
ers
are
req
uire
d t
o
esta
blis
h a
syst
em fo
r re
cycl
ing
.
Aft
er d
ereg
istr
atio
n,
auto
mo
bile
s sh
oul
d
eith
er b
e sc
rap
ped
or
exp
ort
ed.
As
par
t o
f the
End
-Of-
Life
D
irect
ive,
Ext
end
ed
Pro
duc
er R
esp
ons
ibili
ty is
in
clud
ed w
here
pro
duc
ers
have
a re
spo
nsib
ility
to
ta
ke b
ack
auto
mo
bile
s.
Man
ufac
ture
rs
need
to
rem
ove
A
uto
-shr
edd
ing
re
sid
ues,
Fl
uoro
carb
ons
, and
ai
rbag
s fr
om
ELV
b
efo
re t
hey
are
sent
for
recy
clin
g
48
Le M
inh
Trun
g, “
Dec
isio
n N
o. 1
6/20
15/Q
D-T
Tg d
ated
May
25,
201
5 o
f the
Prim
e M
inis
ter o
n re
gul
atio
ns o
n re
call
and
trea
tmen
t o
f dis
card
ed p
rod
ucts
” (2
015)
49
Ji
nhui
Li e
t al.
“Rec
yclin
g a
nd p
ollu
tion
cont
rol o
f the
End
of L
ife V
ehic
les
in C
hina
” (2
014)
50
B
ever
idg
e &
Dia
mo
nd. “
Chi
na p
rom
ulg
ates
Am
end
men
t to
its
Solid
Was
te L
aw”
(202
0)
82 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
Legend
Light blue = Best case practices
There are three key lessons to be gained from the above assessment on circularity for the automotive industry:
1. Japan has the strongest enabling environment for automobile recycling. Its “Automobile Recycling Law” tracks the life cycle of an automobile after its end-of-life and delineates the roles and re-sponsibilities for each stakeholder in the chain. For example, consumers are responsible for the payment of a ‘Recycling Fee’ which funds collection of End-Of-Life Vehicles.
2. The EU’s End-of Life Directive has a very good provision which specifies that automobiles should be designed to facilitate proper dismantling. This is important because it then facilitates the separate collection of materials which can then be easily processed according to its specific recycling process.
3. Vietnam does not have any enabling circularity policies addressing all life-cycle stages of an automobile especially the production/manufacturing stage. Although there are take-back policies (e.g., recall of products), there are no targets for collection of recyclable material from discarded automobiles, hence it is difficult to determine the effectiveness of the policy.
13.5 CONSTRUCTION: ENABLING POLICY ENVIRONMENT
CONSTRUCTION: POLICY EXAMPLES ACROSS LIFE CYCLEExamples of Relevant Policies and Interventions for Plastics Circularity with Regards to Construction and Demolition Waste
LIFE CYCLE STAGES
General Policy Framework
Production Consumption Disposal Recycling
Policies MSW Legislation
National Targets
Export Import Trade Policy
Design Standards
Alternative Materials
Green Certification
There are no specific policies for construction
Landfill bans
Diversion from landfill targets
Source segregation
Dismantling procedure
As plastics used in construction are set in place for the lifespan of the building, consumption policies are not relevant to the discussion on circularity of plastics in construction. Like plastics in other industrial uses, policies which encourage the circularity of plastics in construction need to encourage design which
allows for easy disassembly of plastic components from buildings. Also, recovery of recyclable materials from demolition waste needs to be encouraged to ensure that plastics are also recovered as it is typically a lower value material than the other materials found in demolition material (e.g., concrete, steel).
APPENDIX 13: THE ENABLING POLICY ENVIRONMENT FOR CIRCULARITY AND INTERVENTIONS | 83
CO
NST
RU
CTI
ON
: CU
RR
ENT
POLI
CIE
S A
CR
OSS
LIF
E C
YCLE
51
The
Wo
rld B
ank,
“So
lid a
nd In
dus
tria
l Haz
ard
ous
Was
te M
anag
emen
t: A
sses
smen
t op
tions
and
act
ion
area
s” (2
018)
52
A
ECO
M re
po
rt fo
r Asi
an D
evel
op
men
t Ban
k, “
Peo
ple
’s Re
pub
lic o
f Chi
na: C
ons
truc
tion
and
Dem
olit
ion
Was
te M
anag
emen
t an
d R
ecyc
ling
” (2
018)
53
Va
nban
pha
uat.c
o ,”
Circ
ular
08/
2017
/TT-
BX
D c
ons
truc
tion
solid
was
te m
anag
emen
t” (2
017)
Cur
rent
Pol
icie
s A
cros
s C
onst
ruct
ion
Life
Cyc
le
LIFE
CYC
LE
STA
GES
Vie
tnam
Ben
chm
arks
from
oth
er ju
risd
icti
ons
Chi
naSi
ngap
ore
Euro
pean
Uni
onJa
pan
Gen
eral
Le
gis
lati
ve
Fram
ewo
rk
Co
nstr
ucti
on
and
Dem
olit
ion
was
te (C
DW
) is
clas
sifie
d a
s no
n-ha
zard
ous
so
lid w
aste
s to
get
her
wit
h m
unic
ipal
so
lid
was
te.51
Ther
e is
no
sp
ecifi
c la
w
go
vern
ing
co
nstr
ucti
on
and
dem
olit
ion
(C&
D)
was
te in
Chi
na, i
t is
in
stea
d o
nly
cove
red
in
sub
ord
inat
ed la
ws
incl
udin
g: E
nviro
nmen
tal
Pro
tect
ion
Law
, Cle
aner
Pr
od
ucti
on
Pro
mo
tio
n La
w, S
olid
Was
te P
ollu
tio
n Pr
even
tio
n La
w, C
ircul
ar
Eco
nom
y Pr
om
oti
on
Law
an
d B
uild
ing
Law
.52
Co
nstr
ucti
on
was
te is
co
nsid
ered
no
n-in
cin-
erab
le w
aste
und
er
the
Env
ironm
enta
l Pu
blic
Hea
lth
(Gen
eral
W
aste
Co
llect
ion)
R
egul
atio
ns.
The
Was
te F
ram
ewo
rk
Dire
ctiv
e (2
008/
98/
EC
) aim
s to
recy
cle
70%
of C
ons
truc
tio
n &
D
emo
litio
n (C
&D
) was
te
by
2030
. The
EU
C&
D
Was
te M
anag
emen
t Pr
oto
col l
ays
out
th
e p
roce
dur
e fo
r m
anag
ing
C&
D w
aste
.
The
Co
nstr
ucti
on
Mat
eria
l Rec
yclin
g
Law
set
s a
targ
et o
f 95
% re
cycl
ing
rat
e fo
r co
nstr
ucti
on
was
te. I
t st
ipul
ates
pro
ced
ures
fo
r d
emo
litio
n an
d
key
stak
eho
lder
s in
volv
ed a
nd t
heir
resp
ons
ibili
ties
.
Pro
duc
tio
nC
ircul
ar N
o. 0
8/20
17/T
T-B
XD
re
com
men
ds
reus
ing
or
recy
clin
g c
ons
truc
tio
n w
aste
on
site
acc
ord
ing
to
the
co
nstr
ucti
on
was
te
man
agem
ent
pla
n.53
The
re
are
how
ever
no
sp
ecifi
c ta
rget
s.
Chi
na’s
cur
rent
nat
iona
l st
and
ard
, the
Gre
en
Bui
ldin
g E
valu
atio
n St
and
ard
is b
ased
on
seve
n in
dic
ato
rs, o
ne o
f w
hich
is m
ater
ial s
avin
g
and
mat
eria
l res
our
ces
utili
zati
on.
The
BC
A G
reen
M
ark
Sche
me
enco
urag
es t
he u
se o
f su
stai
nab
le m
ater
ials
in
co
nstr
ucti
on
and
th
e p
rovi
sio
n o
f re
cycl
able
s co
llect
ion
infr
astr
uctu
re.
Sust
aina
ble
co
nstr
ucti
on
is
enco
urag
ed t
hro
ugh
pri
vate
cer
tific
atio
n sc
hem
es.
Ther
e ar
e no
sp
ecifi
c p
olic
ies
wit
h re
gar
ds
to s
usta
inab
le
pro
duc
tio
n in
co
nstr
ucti
on.
84 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
LIFE
CYC
LE
STA
GES
Vie
tnam
Ben
chm
arks
from
oth
er ju
risd
icti
ons
Chi
naSi
ngap
ore
Euro
pean
Uni
onJa
pan
Dis
po
sal
Und
er D
ecre
e N
o.3
8/20
15/
ND
-CP54
, co
nstr
ucti
on
was
te
sho
uld
be
clas
sifie
d in
to
the
follo
win
g c
ateg
ori
es fo
r p
rop
er d
isp
osa
l/tr
eatm
ent:
öR
ecyc
lab
le s
olid
was
te ö
Solid
was
te w
hich
can
be
reus
ed o
n th
e si
te o
r in
othe
r co
nstr
ucti
on
wo
rks
öH
azar
do
us w
aste
that
mus
t b
e se
par
atel
y cl
assi
fied
and
m
anag
ed a
s sp
ecifi
ed in
the
dec
ree
Exi
stin
g re
gul
atio
ns d
o
not
have
any
qua
ntit
ativ
e ta
rget
s o
n C
&D
Was
te
emis
sio
ns, r
ecyc
ling
, or
dis
po
sal.55
Co
nstr
ucti
on
was
te is
co
nsid
ered
no
n-in
cin-
erab
le w
aste
und
er
the
Env
ironm
enta
l Pu
blic
Hea
lth
(Gen
eral
W
aste
Co
llect
ion)
R
egul
atio
ns a
nd
dis
po
sed
of a
t th
e la
ndfil
l wit
hout
in
cine
rati
on.
Land
fill b
ans
are
reco
mm
end
ed a
s p
art
of t
he E
U C
ons
truc
tio
n an
d D
emo
litio
n W
aste
M
anag
emen
t Pr
oto
col.
Ther
e is
no
sp
ecifi
c le
gis
lati
on
wit
h re
gar
ds
to d
isp
osa
l of
cons
truc
tio
n w
aste
at
land
fill.
Rec
yclin
gA
s ab
ove
, co
nstr
ucti
on
was
te
that
is c
lass
ified
as
recy
clab
le
shal
l be
colle
cted
and
tr
ansp
ort
ed t
o c
ons
truc
tio
n w
aste
tre
atm
ent
faci
litie
s fo
r re
use
or
recy
clin
g. T
here
are
ho
wev
er n
o s
pec
ific
targ
ets.
The
BC
A d
emo
litio
n p
roto
col s
pec
ifies
to
ca
rry
out
seq
uent
ial
dem
olit
ion
whe
re o
ne
typ
e o
f mat
eria
l is
care
fully
dis
man
tled
at
one
tim
e an
d
salv
aged
for
reus
e an
d
recy
clin
g t
o m
axim
ize
the
amo
unt
of
mat
eria
ls re
cove
red
.
The
EU
C&
D W
aste
M
anag
emen
t Pr
oto
col
incl
udes
req
uire
men
ts
for
Was
te id
enti
ficat
ion,
so
urce
sep
arat
ion
and
co
llect
ion,
Was
te
log
isti
cs, W
aste
p
roce
ssin
g, a
nd Q
ualit
y m
anag
emen
t.
The
Co
nstr
ucti
on
Mat
eria
l Rec
yclin
g
Law
req
uire
s co
ntra
cto
rs t
o s
ort
o
ut a
nd re
cycl
e w
aste
s g
ener
ated
in
dem
olit
ion
wo
rk o
f a
bui
ldin
g.
54
Van
ban
pha
uat.c
o, ”
Circ
ular
08/
2017
/TT-
BX
D c
ons
truc
tion
solid
was
te m
anag
emen
t” (2
017)
55
A
ECO
M re
po
rt fo
r Asi
an D
evel
op
men
t Ban
k, “
Peo
ple
’s Re
pub
lic o
f Chi
na: C
ons
truc
tion
and
Dem
olit
ion
Was
te M
anag
emen
t an
d R
ecyc
ling
” (2
018)
APPENDIX 13: THE ENABLING POLICY ENVIRONMENT FOR CIRCULARITY AND INTERVENTIONS | 85
Legend
Light blue = Best case practices
There are three key lessons to be gained from the above assessment on circularity for the construction industry:
1. The best enabling policy environments for circularity in construction can be found in multiple countries. However, Japan’s Construction Material Recycling Law is the legislation that offers the most comprehensive coverage of actions to be taken after demolition. In particular, the law “requires contractors to sort out and recycle wastes generated in demolition work of a building” and targets 95% recovery of recyclable materials from demolition waste.
2. Aside from that, Singapore’s Green Mark Scheme encourages building owners to include more
recycled materials to be included in the design of the building as well as providing for recyclables collection infrastructure. Similar recognition schemes are available in the EU, although they are administered through private programs.
3. Vietnam’s existing regulations classify construction and demolition waste together with MSW. Although there are legislations specific to construction waste, there are little to no targets to the rate of recovery of recyclable material or diversion of waste from landfills. Additionally, although CDW is reported as its own stream, in reality there is insufficient focus on separating (at source) and hence separate collection of construction56 waste hence more focus should be placed on separating the construction waste stream from MSW to further enhance the circularity of material particularly plastics within the CDW.
56 The World Bank, “Solid and Industrial Hazardous Waste Management: Assessment options and action areas” (2018)
13.6 FILAMENT: ENABLING POLICY ENVIRONMENT
FILAMENT: POLICY EXAMPLES ACROSS LIFE CYCLEExamples of Relevant Policies and Interventions for Plastics Circularity with Regards to Filaments
LIFE CYCLE STAGES
General Policy Framework
Production Consumption Disposal Recycling
Policies MSW Legislation
National Targets
Export Import Trade Policy
Design Standards
Alternative Materials
Source Reduction
Green Procurement
There are no specific policies for textiles
Source segregation
Extended Producer Responsibility schemes
Currently, filaments or textiles are not treated as a major waste category. Hence, policies which have a specific focus on textiles are scarce. They are typically
treated as part of municipal waste. This study, however, has observed used clothing often has a second life and is being actively traded by the informal sector.
86 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
FILA
MEN
T: C
UR
REN
T PO
LIC
IES
AC
RO
SS L
IFE
CYC
LE
57
We
Li a
nd W
eitin
g L
in, “
Cha
pte
r 7 C
ircul
ar E
cono
my
Polic
ies
in C
hina
” (2
016)
58
M
arlo
us S
pui
jbro
ek, “
Text
ile w
aste
in M
ainl
and
Chi
na”
(201
9)
Cur
rent
Pol
icie
s A
cros
s Fi
lam
ent
Life
Cyc
le
LIFE
CYC
LE
STA
GES
Vie
tnam
Ben
chm
arks
from
oth
er ju
risd
icti
ons
Chi
naSi
ngap
ore
Euro
pean
Uni
onJa
pan
Gen
eral
Le
gis
lati
ve
Fram
ewo
rk
Ther
e is
no
sp
ecifi
c le
gis
lati
on
go
vern
ing
us
ed fi
lam
ents
.
Text
ile w
aste
is o
ne o
f th
e m
ain
field
s co
vere
d
und
er t
he p
ilot
list
of
Chi
na’s
Circ
ular
Eco
nom
y D
evel
op
men
t St
rate
gie
s an
d A
ctio
n Pl
an la
unch
ed in
20
13.57
Ther
e is
no
sp
ecifi
c le
gis
lati
on
go
vern
ing
use
d
filam
ents
.
Polic
ies
for
text
iles
colle
ctio
n an
d re
cycl
ing
is c
ove
red
und
er
the
Circ
ular
Eco
nom
y p
acka
ge.
Ther
e is
no
sp
ecifi
c le
gis
lati
on
go
vern
ing
us
ed fi
lam
ents
.
Pro
duc
tio
nTh
ere
is n
o s
pec
ific
leg
isla
tio
n g
ove
rnin
g
the
use
of r
ecyc
lab
le
mat
eria
ls in
fila
men
t.
The
Dev
elo
pm
ent
Plan
fo
r th
e Te
xtile
Ind
ustr
y fo
cuse
s o
n in
nova
tio
n an
d p
rom
oti
ng g
reen
m
anuf
actu
ring
wit
hin
the
ind
ustr
y. T
his
incl
udes
the
ex
plo
rati
on
of a
lter
nati
ve
mat
eria
ls s
uch
as b
io-b
ased
fib
ers
mad
e fr
om
sea
wee
d
or
crab
she
lls.58
Ther
e is
no
sp
ecifi
c le
gis
lati
on
go
vern
ing
the
us
e o
f rec
ycla
ble
m
ater
ials
in
filam
ent.
The
Eur
op
ean
Clo
thin
g A
ctio
n Pl
an (E
CA
P) e
nco
urag
es
des
igne
rs &
buy
ers
on
mo
re
sust
aina
ble
des
ign
pra
ctic
es
thro
ugh
the
Des
ign
for
Long
evit
y p
latf
orm
.
Ther
e is
no
sp
ecifi
c le
gis
lati
on
go
vern
ing
th
e us
e o
f rec
ycla
ble
m
ater
ials
in fi
lam
ent.
Co
nsum
pti
on
Ther
e is
no
sp
ecifi
c le
gis
lati
on
go
vern
ing
th
e co
nsum
pti
on
of
filam
ents
.
Ther
e is
no
sp
ecifi
c le
gis
lati
on
go
vern
ing
the
co
nsum
pti
on
of fi
lam
ents
.
Ther
e is
no
sp
ecifi
c le
gis
lati
on
go
vern
ing
the
co
nsum
pti
on
of
filam
ents
.
The
EU
GPP
Cri
teri
a fo
r Te
xtile
Pr
od
ucts
and
Ser
vice
s ar
e a
volu
ntar
y in
stru
men
t fo
r al
l E
U M
emb
er S
tate
s an
d p
ublic
au
tho
riti
es, w
ith
the
go
al o
f fa
cilit
atin
g t
he in
clus
ion
of
envi
ronm
enta
l cri
teri
a in
to p
ublic
te
nder
s.
Ther
e is
no
sp
ecifi
c le
gis
lati
on
go
vern
ing
th
e co
nsum
pti
on
of
filam
ents
.
APPENDIX 13: THE ENABLING POLICY ENVIRONMENT FOR CIRCULARITY AND INTERVENTIONS | 87
LIFE
CYC
LE
STA
GES
Vie
tnam
Ben
chm
arks
from
oth
er ju
risd
icti
ons
Chi
naSi
ngap
ore
Euro
pean
Uni
onJa
pan
Rec
yclin
gTh
ere
is n
o s
pec
ific
leg
isla
tio
n g
ove
rnin
g
the
recy
clin
g o
f fil
amen
ts.
The
13th
five
-yea
r p
lan
for
Eco
nom
ic a
nd S
oci
al
Dev
elo
pm
ent
of t
he
Peo
ple
’ Rep
ublic
of C
hina
(2
016-
2020
) inc
lud
es
envi
ronm
enta
l tar
get
s su
ch
as t
he e
stab
lishm
ent
of a
re
cycl
ing
sys
tem
for
text
iles
and
imp
lem
enta
tio
n o
f an
EPR
sys
tem
.59
The
Do
mes
tic
Was
te
Cla
ssifi
cati
on
Syst
em
Imp
lem
enta
tio
n Pl
an
intr
od
uced
in 2
017
has
the
go
al o
f ach
ievi
ng t
he
imp
lem
enta
tio
n o
f was
te
sep
arat
ion
leg
isla
tio
n b
y th
e en
d o
f 202
0. W
ith
the
init
ial w
aste
cat
ego
ries
of
haza
rdo
us w
aste
, kit
chen
w
aste
and
recy
clab
le
mat
eria
ls o
f whi
ch t
exti
les
is
clas
sifie
d u
nder
recy
clab
le
mat
eria
ls.
Ther
e is
no
sp
ecifi
c le
gis
lati
on
go
vern
ing
the
re
cycl
ing
of
filam
ents
.
The
2018
Circ
ular
Eco
nom
y Pa
ckag
e re
qui
res
Mem
ber
St
ates
to
ens
ure
that
tex
tile
s ar
e co
llect
ed s
epar
atel
y b
y 20
25
Ther
e is
no
sp
ecifi
c le
gis
lati
on
go
vern
ing
the
re
cycl
ing
of fi
lam
ents
.
59
Mar
lous
Sp
uijb
roek
, “Te
xtile
was
te in
Mai
nlan
d C
hina
” (2
019)
88 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
Legend
Light blue = Best case practices
There are two key lessons to be gained from the above assessment on circularity for the construction industry:
1. Filament / textile waste has traditionally been the least prioritized among the various waste streams across all jurisdictions. It was only in 2018, that the
EU took significant steps to address circularity for textile waste. The 2018 Circular Economy Package requires Member States to ensure that textiles are collected separately by 2025.
2. The lack of prioritization for textile waste has resulted in Vietnam having almost no collection or recycling infrastructure for textiles. This has resulted in an average 1% collection for recycling rate for polyester in Vietnam.
13.7 SUMMARY: ENABLING POLICY ENVIRONMENT FOR THE FIVE INDUSTRIES
In summary, to create an enabling environment for plastics circularity, a life-cycle approach needs to be taken to ensure that all parts of the value chain are covered. This is because, in many cases, policies across various life cycle stages rely on each other to work. For example, requirements to recycle a certain
percentage or use a certain percentage of recycled materials would be ineffective if the materials are not designed to be recyclable in the first place. Hence, to achieve circularity, policies need to address all parts of the circular economy for it to transition from a linear one.
Photo: MOHAMED ABDULRAHEEM - shutterstock
APPENDIX 13: THE ENABLING POLICY ENVIRONMENT FOR CIRCULARITY AND INTERVENTIONS | 89
Sum
mar
y of
Ena
blin
g Po
licy
Envi
ronm
ent
and
Bes
t-C
ase
Prac
tice
Pol
icy
for t
he 5
Indu
stri
es
Life
Cyc
le
Stag
e
Pack
agin
gEl
ectr
onic
sA
utom
otiv
eC
onst
ruct
ion
Fila
men
t
VN
CN
SGIN
EUJP
VN
CN
SGEU
JPV
NC
NSG
EUJP
VN
CN
SGEU
JPV
NC
NSG
EUJP
Gen
eral
√√
√√
√√
√√
√√
√√
√√
√√
√√
Pro
duc
tio
n√
√√
√√
√√
√√
√√
√√
Co
nsum
ptio
n√
√√
√√
√√
√√
√√
√√
√
Dis
po
sal
√√
√√
√√
√√
√√
√
Rec
yclin
g√
√√
√√
√√
√√
√√
√√
√√
√√
√√
√√
√
Lege
nd
Polic
y d
oes
no
t ex
ist
√Po
licy
exis
ts
Bes
t ca
se p
ract
ice
po
licy
As
sho
wn
in t
he t
able
ab
ove
, w
hile
the
re a
re s
om
e no
tab
le p
olic
ies
in V
ietn
am w
ith
reg
ard
s to
pla
stic
s ci
rcul
arit
y, V
ietn
am la
gs
beh
ind
bes
t-ca
se e
xam
ple
s in
juri
sdic
tio
ns
such
as
the
EU
, Ja
pan
and
oth
er A
sian
co
untr
ies
such
as
Sing
apo
re w
ho h
ave
mo
re
com
pre
hens
ive
po
licie
s ac
ross
the
pla
stic
s lif
e cy
cle.
90 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 14:
TIGHTENING OF GLOBAL REGULATIONS ON SCRAP PLASTIC & RECYCLED PLASTIC TRADING
60 Secretariat of the Basel Convention, "Basel Convention Plastic Waste Amendments"
14.1 BASEL CONVENTION PLASTIC WASTE AMENDMENTS
Basel convention, a near-universal treaty which regulates the transboundary movements of hazardous wastes and other wastes and of which Vietnam is a signatory, has adopted amendments to Annexes II, VIII and IX to the Convention which deal with the transboundary movement of plastic waste that came into force on the 1st of January 2021.60
The following are the amendments made to the Annexes II, VIII and IX:
Annex II
• Insertion of a new entry Y48 (covers non-hazardous plastic waste which is not covered by Basel Listing B3011, including mixtures of such wastes unless they are hazardous.)
• Prior notice and consent are required.
Annex VIII
• New entry A3210 which clarifies the scope of plastic wastes presumed to be hazardous.
• Prior notice and consent are required.
Annex IX
• Entry B3010 is replaced with a new entry B3011 which clarifies the types of plastic wastes that are presumed to not be hazardous.
• Prior notice and consent are not required.
Through three amendments to the annexes to the Convention, this decision specifies the new categories of plastic waste that will be subject to the Convention’s:
• Control procedure for transboundary movements, Prior informed Consent (PIC) procedure, and the conditions under which this procedure applies;
• Provisions pertaining to waste minimization; and
• Provisions pertaining to the environmentally sound management of wastes.
APPENDIX 14: TIGHTENING OF GLOBAL REGULATIONS ON SCRAP PLASTIC & RECYCLED PLASTIC TRADING | 91
Based on these amendments, the types of plastic scrap/ waste that will or will not be controlled are as follows:
• All plastic waste and mixtures of plastic wastes except for waste covered by entry B3011 will require the importing country’s prior informed consent before it can be exported. Types of plastic scrap/ waste that will be controlled61:
ö Plastic scrap and waste that is contaminated (e.g., with food residue and/or other non-hazardous waste)
ö Plastic scrap and waste mixed with other types of scrap and waste
ö Plastic scrap and waste containing halogenated polymers (e.g., PVC)
ö Mixed plastic scrap and waste, except for shipments consisting of polyethylene (PE), polypropylene (PP), and polyethylene terephthalate (PET) that meet the criteria described in Basel listing B3011
• Only batches of individual non-halogenated polymers (for a very narrow mix of polyethylene, PP and PET), that are sorted, clean, and uncontaminated and effectively destined for recycling can be freely traded globally. Types of plastic scrap/ waste that will not be controlled/ not be subjected to PIC procedure (criteria in Basel Listing B3011)62:
Plastic scrap must be pre-sorted, clean, destined for “recycling in an environmentally sound manner” and be classified in one of the following groups:
• Plastic scrap “almost exclusively” consists of one non-halogenated polymer (e.g., PE, PP, PET, PS, ABS).
• Plastic scrap “almost exclusively” consisting of one cured resin or condensation product (e.g., epoxy resins)
61 EPA, "New international requirements for the export and import of plastic recyclables and waste"62 EPA, "New international requirements for the export and import of plastic recyclables and waste"63 The Waste Disposal Ordinance (WDO), Cap. 354, provides legislative control on pollution caused by all forms of wastes including
activities which involve the import or export of waste. It provides the statutory framework for the planning, management, and control of wastes in Hong Kong, China.
64 “Environmentally sound recycling” is defined in the technical guidelines on the identification and environmentally sound manage-ment of plastic wastes and for their disposal.
• Plastic scrap “almost exclusively” consisting of one of a limited number of fluorinated polymers (e.g., polyvinyl fluoride)
• Mixed plastic scrap consisting of PE, PP, and PET, provided it is destined for “separate recycling” of each material, and in an environmentally sound manner, and almost free from contamination and other types of wastes.
14.2 HONG KONG, CHINA’S UPDATED GUIDELINES IN COMPLIANCE WITH THE AMENDMENTS
Thus far, only Hong Kong, China has updated its guidelines to comply with the Basel Convention Plastic Waste Amendments. The following are the new controls in Hong Kong, China:
• Unrestricted plastic waste: Non-regulated plastic waste items within the Sixth Schedule of WDO (Waste Disposal Ordinance of Hong Kong, China)63 or entry B3011 of Annex IX of Basel Convention which are almost free from contamination and other types of wastes (with contaminants of not more than 0.5%), can still be imported without the requirement of import permit if it is destined for recycling in an environmentally sound manner.64
• Restricted plastic waste: On the other hand, the import of plastic waste items not within the Sixth Schedule of WDO or non B3011 of Annex IX such as Y48 and A3210 will be subject to the control of permit/consent while transhipment will require a notification.
• Export permits or approval issued by the exporting countries must be available in case of import to Hong Kong, China or transhipment via Hong Kong, China.
92 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 15:
BIOPLASTIC ALTERNATIVES
65 European Bioplastics
66 Biobased plastics in a circular economy, CE Delft (2017)
Until 2015, bioplastics remained a very niche subcategory of the global plastics industry. However recent attempts by governments around the world to curb the use of single-use plastics and fossil-fuel derived plastics, has given an opportunity for the emergence of bioplastics. Globally, approximately 2 million TPY of different types of bioplastics is produced. In comparison to fossil-fuel derived plastics, this is only 1-2%.
To understand bioplastics in the context of plastics recycling, it is important to understand their sources and biodegradability together with plastics based on conventional, fossil resources.
Overview of Types of Plastic 65
All plastics can be categorized into four main groups:
• Biobased or partially biobased non-biodegradable plastics such as biobased PE, PP, PET (so-called drop-ins) and biobased technical performance polymers such as PTT, TPC-ET
• Plastics that are both biobased and biodegradable, such as PLA, PHA, PBS
• Plastics that are based on fossil resources and are biodegradable, such as PBAT
• Plastics that are based on fossil resources and are non-biodegradable, such as conventional PET, PP, HDPE, LDPE
Biobased plastics can contribute to lowering greenhouse gas emissions and demand for fossil resources, when substituting the fossil counterparts. Together with a high recycling rate of biobased plastics and the substitution of the fossil fuel inputs by sustainable biobased resources, this would provide an attractive vision for a circular economy.66
APPENDIX 15: BIOPLASTIC ALTERNATIVES | 93
Photo: Extarz - shutterstock
94 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 16:
ASSUMPTIONS FOR THE IMPACT OF EACH INTERVENTION
Assumptions for the Potential Impact on CFR Rate and Value Yield of Each Intervention
# Recommendations Modelling Assumptions
CFR Rate Increase
Value Yield Increase
1 INTERVENTIONS THAT INCREASE VALUE YIELD AND CFR RATE
ABuild out and enforce plastics circularity in LEP
- - -
B Increase sorting efficiency
CFR rate: Implementing this intervention will increase MSW sorting to 40% of all collected MSW, so currently non-recycled plastics reduces by 40%. Assumes there will be a 100% collection of MSW. This leads to an increase in CFR rate of 27%.
Value Yield: Implementing this intervention will increase demand for all products by approximately 10% of existing value due to better sorting.
27% 8%
CImprove access to finance and capacity building
- - -
APPENDIX 16: ASSUMPTIONS FOR THE IMPACT OF EACH INTERVENTION | 95
# Recommendations Modelling Assumptions CFR Rate Increase
Value Yield Increase
D
Encourage use of recycled content across all major end-use applications
CFR rate: Assuming a 30% recycled content target and that all comes from local sources and 10% process losses occur, a minimum CFR rate of 33% is required to achieve a 30% recycled content target. Also, it is assumed that currently 50% of all recycled plastics are exported. When recycled content targets are set, it is assumed the % of plastics that will be exported will reduce to 40% (from 50%) i.e., local demand for recycled plastics will increase to 60% of all recycled plastics. So, 55% CFR rate is needed such that 60% of that becomes 55% CFR rate. Thus, the increase in CFR rate needed is 55%-33%=22% i.e. 22%
Value Yield: Implementing this intervention will increase demand for all products by approximately 15% of existing value.
22% 11%
E
Mandate “design for recycling” standards for all plastics, especially packaging
CFR rate: Based on Ellen MacArthur Foundation's New Plastics Economy Catalysing Action report, without fundamental redesign and innovation about 30% of plastic packaging will never be reused or recycled. Assuming this 30% can be applied across all applications of plastics moves CFR to right by 30%.
Value Yield: Based on the above-mentioned report, implementing four areas of packaging design changes could have a positive impact on recycling economics amounting to USD 90-140 per tonne collected.
30% 17%
F
Create more data transparency in the plastics market - - -
96 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
# Recommendations Modelling Assumptions CFR Rate Increase
Value Yield Increase
2 INTERVENTIONS THAT INCREASE CFR RATE
G
Increase recycling (mechanical and chemical) capacities & discourage disposal of plastics
CFR rate: 100% recycling capacity is needed to achieve very high recycling rates for plastics. Assuming the current value yield stays the same as recycling capacity increases to 100%. Increasing recycling capacity to 100% can enable an additional 67% of plastics to be recycled. It must be noted that this increase in CFR cannot be achieved without the implementation of policies which create a demand pull for recycled plastics (e.g., recycled content targets, virgin plastic taxes) and implementation of actions which enable plastics to be available for recycling (e.g., source segregation, design-for-recy-cling).
Value Yield: No change
67% 0%
H
Create industry-spe-cific requirements to collect post-use products
CFR Rate: Assuming a 90% CFR rate target for packaging and 50% CFR rate target for all non-packaging applications. 35% of all plastics is consumed by packaging and the rest by non-packaging so this provides a weighted average CFR rate of 64% to be reached. After factoring in the existing CFR rate of 33%, the increase in CFR rate is 31%
Value Yield: No change
31% 0%
APPENDIX 16: ASSUMPTIONS FOR THE IMPACT OF EACH INTERVENTION | 97
Photo: Romolo Tavani - shutterstock
98 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
APPENDIX 17:
SUMMARY OF ALL RECOMMENDED IN-TERVENTIONS AND ACTIONS
Summary of all recommended interventions and actions under this study
Recommended Interventions # Actions
Area of Impact
Based on CFR / Value Yield
Based on Supply and Demand
A. Enable plastics circularity through sound development of circulars and decrees for the LEP
1
Ensure the responsible agencies have the authority and resources to work with the relevant stakeholders to develop the underlying policy instruments (circulars and decrees) legislation and enforce the LEP.
CFR and Value Yield
Supply and Demand
2
Incentivize reduction of plastics (e.g. phase-outs of unnecessary plastic items) and reuse systems (e.g. refillable bottles, new delivery, and business models)
CFR and Value Yield
Supply and Demand
B. Increase waste collection & sorting efficiency of plastics
3Increase waste collection coverage and phase out dumpsites
CFR Supply
4
Mandate and harmonize standards and targets for source segregation and separate collection
CFR and Value Yield
Supply
5
Ensure alignment between public and private sector awareness & behavior change campaigns
CFR and Value Yield
Supply
6
Provide opportunities for informal sector inclusion and increase transparency of recyclables collection
CFR and Value Yield
Supply
7
Implement pay-as-you-throw (PAYT) waste collection model to encourage separation at source
CFR and Value Yield
Supply
APPENDIX 17: SUMMARY OF ALL RECOMMENDED INTERVENTIONS AND ACTIONS | 99
Recommended Interventions # Actions
Area of Impact
Based on CFR / Value Yield
Based on Supply and Demand
C. Improve access to finance and capacity building
8Refine the green finance framework to provide incentives to support the plastics recycling value chain
CFR and Value Yield
N/A
9 Develop practical processes for financing plastics circularity businesses
CFR and Value Yield
N/A
10 Build recyclers capacities to meet quality & EHS standards
CFR and Value Yield
Supply and Demand
11 Assess emissions mitigation potential in plastics circularity to unlock climate finance
CFR and Value Yield
Supply and Demand
D. Encourage use of recycled content across all major end-use applications
12 Develop & launch incentives for using recycled content
CFR and Value Yield
Demand
13 Set recycled content targets/standards for major plastic use industries
CFR and Value Yield
Demand
14 Implement Green Public Procurement (GPP) for recycled plastic products
CFR and Value Yield
Demand
15 Tax plastic applications without minimum recycled content
CFR and Value Yield
Demand
E. Mandate design-for-recy-cling standards for all plastics, especially packaging
16 MOIT to consult with relevant stakeholders to develop design-for-recycling standards
CFR and Value Yield
Supply and Demand
17Align industries on design-for-recycling standards and encourage voluntary adoption of these standards
CFR and Value Yield
Supply and Demand
18 Mandate national design-for-recycling standards for packaging plastics
CFR and Value Yield
Supply and Demand
F. Create more data transparency in the plastics market
19
MOIT/Customs to formally (i)create publicly accessible database of plastics import/export; (ii)improve accuracy of data entry; and (iii)build a comprehensive list of recyclers
CFR N/A
20VPA to: (i) encourage greater company participation in data sharing; and (ii) create virgin/recycled resin market database
CFR and Value Yield
N/A
21 Develop VPRA into a separate association; expand membership and representation
CFR N/A
100 | Market Study for Vietnam: Plastics Circularity Opportunities and Barriers
Recommended Interventions # Actions
Area of Impact
Based on CFR / Value Yield
Based on Supply and Demand
G. Increase recycling (mechanical and chemical) capacities & discourage disposal of plastics
22
Incentivize increase in recycling capacities for polyolefins (PP, PE) and develop PET Packaging recycling to produce higher-end recycled products
CFR and Value Yield
Supply and Demand
23 Formalize informal recyclers and reduce unfair competition from illegal recyclers
CFR and Value Yield
N/A
24
Develop clear standards for the import of quality scrap plastics for production of pellets, semi-finished and/or finished goods; and avoid an outright plastic scrap import ban.
CFR Supply
25Invest in chemical recycling (plastic-to-naphtha / plastic-to-monomer) capacity for low value plastics
CFR Demand
26 Increase landfill tipping fees and invest in treatment of organic waste
CFR Supply
H. Create in-dustry-specific requirements to collect post-use products
27Mandate collection targets specifically for the packaging industry based on industry consultations
CFR Supply
28 Support co-processing of low-value plastics for use in RDF as an interim measure
CFR Demand
29 Mandate reporting framework for plastic products
CFR N/A
JUNE 2021